-Refer to Figure 6.5.The substitution effect is shown by the movement
A) From point A to point B
B) From point A to point C
C) From point B to point C
D) From point B to point A

Question

-Refer to Figure 6.5.The substitution effect is shown by the movement
A) From point A to point B 
B) From point A to point C 
C) From point B to point C 
D) From point B to point A

Quizplus · Accepted Answer

The substitution effect is shown by the movement from point A to point B because as the price of good X decreases, consumers will substitute good X for good Y, leading to an increase in the quantity of good X demanded.