Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for blu-ray discs. Which panel best describes what happens in this market if there is a substantial increase in the price of blu-ray players?

A curve that shows the various combinations of goods and services that are possible for an economy to produce with a given amount of resources is referred to as a(n):

A) supply curve. B) isocost curve. C) budget constraint. D) production possibilities curve.

If income increases due to a decrease in taxes, then

A) utility will increase because consumers can afford a larger bundle of goods. B) utility will fall because consumers will be forced to buy a smaller bundle of goods. C) utility will remain constant. D) utility will increase because consumers will be forced to buy a smaller bundle of goods.