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Figure 4.7.3 -Refer to Figure 4.7.3. According to the Hicksian Substitution Effect

Question 125

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  Figure 4.7.3 -Refer to Figure 4.7.3. According to the Hicksian substitution effect, A)  the decrease in the price of food does not take the consumer to a higher budget line. B)  without drawing the corresponding indifference curve, it is difficult to tell if the consumer would be equally well off at points A and B. C)  indifference curves are not required to assert that, in this figure, the consumer is equally well off at points A or B. D)  the dashed budget line is an improper construct of the traditional substitution effect. Figure 4.7.3
-Refer to Figure 4.7.3. According to the Hicksian substitution effect,


A) the decrease in the price of food does not take the consumer to a higher budget line.
B) without drawing the corresponding indifference curve, it is difficult to tell if the consumer would be equally well off at points A and B.
C) indifference curves are not required to assert that, in this figure, the consumer is equally well off at points A or B.
D) the dashed budget line is an improper construct of the traditional substitution effect.

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