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Figure: Income and Substitution Effects
-(Figure: Income and Substitution Effects) Look at the figure Income and Substitution Effects. Carlos is consuming his optimal consumption bundle at point A when the price of gasoline falls. The movement from K₂ to K₃ reflects the _____ the decrease in the price of gasoline.

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Figure: Income and Substitution Effects

-(Figure: Income and Substitution Effects) Look at the figure Income and Substitution Effects. Carlos is consuming his optimal consumption bundle at point A when the price of gasoline falls. The movement from K₂ to K₃ reflects the _____ the decrease in the price of gasoline.

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The Answer of Use the following to answer questions: Figure: Income and Substitution Effects -(Figure: Income and Substitution Effects) Look at the figure Income and Substitution Effects. Carlos is consuming his optimal consumption bundle at point A when the price of gasoline falls. The movement from K₂ to K₃ reflects the _____ the decrease in the price of gasoline. A) total change in quantity demanded due to B) income effect of C) substitution effect of D) income and substitution effects of

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