In autumn, the Connecticut apple market is perfectly competitive. If market demand increases—resulting, say, from a change in consumer taste—the demand curves faced by each individual firm will, in the long run

If a good's price is volume sensitive, the consumer will:

A. choose the bundle on the budget line that lies on the lowest indifference curve. B. choose the bundle on the budget line where the budget line is "kinked." C. choose a boundary solution. D. choose the bundle on the budget line that lies on the highest indifference curve.

Which of the following goods is given in the textbook as an example of a good whose price is subject to volume discounts?

A. Electricity B. Pizza C. Gasoline D. Yogurt