Figure: Indifference Curves and Consumption Bundles (Figure: Indifference Curves and Consumption Bundles) Look at the 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:
A)H3 to H2.
B)H3 to H1.
C)H2 to H1.
D)H1 to H2.

Question

Figure: Indifference Curves and Consumption Bundles   (Figure: Indifference Curves and Consumption Bundles) Look at the 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:
A)H3 to H2. 
B)H3 to H1. 
C)H2 to H1. 
D)H1 to H2.

Quizplus · Accepted Answer

The Answer of Figure: Indifference Curves and Consumption Bundles   (Figure: Indifference Curves and Consumption Bundles) Look at the 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:
A)H3 to H2. 
B)H3 to H1. 
C)H2 to H1. 
D)H1 to H2.