Figure 21-21

-Refer to Figure 21-21.If the consumer were initially at point A in the figure,a movement from point B to point C as a result of a decrease in the price of potato chips represents the
A) substitution effect.
B) income effect.
C) budget effect.
D) price effect.

Question

Figure 21-21
 
-Refer to Figure 21-21.If the consumer were initially at point A in the figure,a movement from point B to point C as a result of a decrease in the price of potato chips represents the
A) substitution effect. 
B) income effect. 
C) budget effect. 
D) price effect.

Quizplus · Accepted Answer

The Answer of Figure 21-21
 
-Refer to Figure 21-21.If the consumer were initially at point A in the figure,a movement from point B to point C as a result of a decrease in the price of potato chips represents the
A) substitution effect. 
B) income effect. 
C) budget effect. 
D) price effect.

Figure 21-21 -Refer to Figure 21-21.If the Consumer Were Initially at Point