Figure 21-8

-Refer to Figure 21-8.If the consumer was 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 21-8
 
-Refer to Figure 21-8.If the consumer was 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 21-8
 
-Refer to Figure 21-8.If the consumer was 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 21-8 -Refer to Figure 21-8.If the Consumer Was Initially at Point