According to the following figure,the movement from point (4,3)to point A is a function of ________,while the subsequent movement from point A to point (2,3)results from ________.

A) an increase in the price of pizza; a decrease in the price of Pepsi
B) a decrease in the price of pizza; an increase in the price of Pepsi
C) a combination of the substitution and real-income effects; a decrease in the price of pizza
D) the substitution effect alone; the real-income effect alone
E) the real-income effect alone; the substitution effect alone

Question

According to the following figure,the movement from point (4,3)to point A is a function of ________,while the subsequent movement from point A to point (2,3)results from ________.

A) an increase in the price of pizza; a decrease in the price of Pepsi 
B) a decrease in the price of pizza; an increase in the price of Pepsi 
C) a combination of the substitution and real-income effects; a decrease in the price of pizza 
D) the substitution effect alone; the real-income effect alone 
E) the real-income effect alone; the substitution effect alone

Quizplus · Accepted Answer

The Answer of According to the following figure,the movement from point (4,3)to point A is a function of ________,while the subsequent movement from point A to point (2,3)results from ________.

A) an increase in the price of pizza; a decrease in the price of Pepsi 
B) a decrease in the price of pizza; an increase in the price of Pepsi 
C) a combination of the substitution and real-income effects; a decrease in the price of pizza 
D) the substitution effect alone; the real-income effect alone 
E) the real-income effect alone; the substitution effect alone

According to the Following Figure,the Movement from Point (4,3)to Point