-In the above figure, income is $8, the price of a soft drink is $1, and the initial price of a milkshake is
$2) If the price of a milkshake decreases to $1, the income effect is the movement from point _______
To point _______.
A) b; c
B) b; d
C) a; c
D) a; b

Question

-In the above figure, income is $8, the price of a soft drink is $1, and the initial price of a milkshake is
$2) If the price of a milkshake decreases to $1, the income effect is the movement from point _______
To point _______.
A) b; c 
B) b; d 
C) a; c 
D) a; b

Quizplus · Accepted Answer

The income effect is the movement from point b to point c because the decrease in the price of a milkshake makes milkshakes more affordable, so consumers will buy more milkshakes.

-In the Above Figure, Income Is $8, the Price of a Soft