For normal goods like cola and pizza,what happens due to the substitution effect when the price of pizza falls
A)There is a shift to a lower indifference curve, so the consumer buys more cola.
B)There is a shift to a higher indifference curve, so the consumer buys more cola.
C)There is movement along the indifference curve, so the consumer buys more cola.
D)There is movement along the indifference curve, so the consumer buys less cola.

Question

Quizplus · Accepted Answer

When the price of pizza falls, the substitution effect causes the consumer to buy more pizza and less cola, moving along the same indifference curve.

For Normal Goods Like Cola and Pizza,what Happens Due to the Substitution