Refer to Figure 6.1.Assume that L1 represents the budget line before a price change.The substitution effect is shown by the movement:
A)from bundle A to bundle C.
B)from bundle A to bundle B.
C)from bundle B to bundle C.
D)from bundle C to bundle B.

Question

Refer to Figure 6.1.Assume that L1 represents the budget line before a price change.The substitution effect is shown by the movement: 
A)from bundle A to bundle C. 
B)from bundle A to bundle B. 
C)from bundle B to bundle C. 
D)from bundle C to bundle B.

Quizplus · Accepted Answer

The Answer of Refer to Figure 6.1.Assume that L1 represents the budget line before a price change.The substitution effect is shown by the movement: 
A)from bundle A to bundle C. 
B)from bundle A to bundle B. 
C)from bundle B to bundle C. 
D)from bundle C to bundle B.