Figure 21-12
-Refer to Figure 21-12.The shift from point B to point C in the figure is due to the
A) substitution effect of an increase in the price of potato chips.
B) income effect of an increase in the price of potato chips.
C) substitution effect of a decrease in the price of potato chips.
D) income effect of a decrease in the price of potato chips.

Question

Figure 21-12 
-Refer to Figure 21-12.The shift from point B to point C in the figure is due to the
A) substitution effect of an increase in the price of potato chips. 
B) income effect of an increase in the price of potato chips. 
C) substitution effect of a decrease in the price of potato chips. 
D) income effect of a decrease in the price of potato chips.

Quizplus · Accepted Answer

The Answer of Figure 21-12 
-Refer to Figure 21-12.The shift from point B to point C in the figure is due to the
A) substitution effect of an increase in the price of potato chips. 
B) income effect of an increase in the price of potato chips. 
C) substitution effect of a decrease in the price of potato chips. 
D) income effect of a decrease in the price of potato chips.

Figure 21-12 -Refer to Figure 21-12.The Shift from Point B to Point