You consume only steak and lobster. Your income effect from a drop in the price of lobster is measured by a movement along your indifference curve between steak and lobster.

Name: You consume only steak and lobster. Your income effect from a drop in the price of lobster is measured by a movement along your indifference curve between steak and lobster.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The income effect is represented by a shift to a higher or lower indifference curve, not a movement along the same indifference curve.

You Consume Only Steak and Lobster