Figure 21-12
-Refer to Figure 21-12.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 21-12 
-Refer to Figure 21-12.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 21-12 
-Refer to Figure 21-12.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 21-12 -Refer to Figure 21-12.If the Consumer Was Initially at Point