-Refer to Figure 6.1.Point C represents the
A) Uncompensated effect on an increase in the price of soup
B) Compensated effect on a decrease in the price of soup
C) Uncompensated effect on a decrease in the price of soup
D) Compensated effect on an increase in the price of soup

Question

-Refer to Figure 6.1.Point C represents the
A) Uncompensated effect on an increase in the price of soup 
B) Compensated effect on a decrease in the price of soup 
C) Uncompensated effect on a decrease in the price of soup 
D) Compensated effect on an increase in the price of soup

Quizplus · Accepted Answer

Point C in economic graphs typically represents the compensated effect, which accounts for changes in consumption due to a price change with compensation to keep utility constant. In this context, it refers to the effect of an increase in the price of soup, adjusting for utility to remain the same.

-Refer to Figure 6.1.Point C Represents the