Figure 4.2.2
-Refer to Figure 4.2.2 above. Starting at point A, which of the following represents the substitution effect of an increase in the price of food?

Question

Quizplus · Accepted Answer

The substitution effect of an increase in the price of food is represented by the move from point A to point B. This illustrates how the consumer adjusts their consumption in favor of the good that has become relatively cheaper, holding utility constant.

Figure 4.2.2 -Refer to Figure 4.2.2 Above. Starting at Point A, Which