The following figure shows a portion of a consumer's indifference map and budget lines. The price of good Y is $17 and the consumer's income is $7,650.
Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve II. Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve I.
-The substitution effect of the change in the price of X is _________; the income effect is _________; the total effect is _________.

Question

The following figure shows a portion of a consumer's indifference map and budget lines. The price of good Y is $17 and the consumer's income is $7,650.
  Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve II. Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve I.
-The substitution effect of the change in the price of X is _________; the income effect is _________; the total effect is _________.

Quizplus · Accepted Answer

The Answer of The following figure shows a portion of a consumer's indifference map and budget lines. The price of good Y is $17 and the consumer's income is $7,650.
  Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve II. Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve I.
-The substitution effect of the change in the price of X is _________; the income effect is _________; the total effect is _________.

The Following Figure Shows a Portion of a Consumer's Indifference