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-(Figure: Indifference Curves and Consumption Bundles) Use Figure Indifference Curves and Consumption Bundles.In the figure,the initial optimum is at a.The price of hot dogs now increases.The change in hot dog consumption due to the substitution effect is:

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-(Figure: Indifference Curves and Consumption Bundles) Use Figure Indifference Curves and Consumption Bundles.In the figure,the initial optimum is at a.The price of hot dogs now increases.The change in hot dog consumption due to the substitution effect is:

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The substitution effect shows the change in consumption of a good due to a change in its relative price, holding the consumer's utility constant. In this case, the price of hot dogs increases, making them relatively more expensive than hamburgers. As a result, the consumer will substitute away from hot dogs and towards hamburgers, moving from consumption bundle H3 to H2.

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