Figure 10-6
Manuri has $300 to spend on Pilates classes and Yoga classes. The price of a group Pilates class is $20 and the price of a group Yoga class is $10. Manuri's optimal bundle is given by "A" in Figure 9-6.
-Refer to Figure 10-6.Suppose the price of Pilates sessions rise to $30 while income and the price of Yoga sessions remain unchanged.The income effect of this price change is represented by the movement from

Question

Figure 10-6  
Manuri has $300 to spend on Pilates classes and Yoga classes. The price of a group Pilates class is $20 and the price of a group Yoga class is $10. Manuri's optimal bundle is given by "A" in Figure 9-6.
-Refer to Figure 10-6.Suppose the price of Pilates sessions rise to $30 while income and the price of Yoga sessions remain unchanged.The income effect of this price change is represented by the movement from

Quizplus · Accepted Answer

Without access to the actual figures (Figure 10-6 and Figure 9-6) and the specific points (A, B, C, D) mentioned in the question, I cannot provide a precise answer to the scenario described. However, I can explain the concepts involved, which should help you understand how to determine the income effect of a price change.
When the price of a good (in this case, Pilates classes) increases, there are two main effects on the consumer's choice: the income effect and the substitution effect.
1. **Substitution Effect**: This occurs because the relative price of goods has changed. In this case, Pilates classes have become relatively more expensive compared to Yoga classes. As a result, the consumer is likely to substitute away from Pilates and towards Yoga, which has become relatively cheaper.
2. **Income Effect**: This occurs because the price increase effectively reduces the consumer's purchasing power. Since Pilates classes are now more expensive, the consumer can afford fewer classes than before with the same amount of money ($300). This is like having a reduction in real income.
In the context of an indifference curve analysis, the income effect can be illustrated by a shift from the initial optimal bundle (point A) to a new bundle that is on a lower indifference curve (since the consumer can now afford less of the more expensive good).
To determine which movement (A to B, B to C, D to B, or D to C) represents the income effect, you would typically look for a shift that represents a lower level of utility (a lower indifference curve) while keeping the relative prices constant (which means moving along a hypothetical budget line that reflects the new price of Pilates but with the same purchasing power as before the price change).
Since I cannot see the actual figures and points, I cannot specify which movement corresponds to the income effect. However, you would typically look for a movement that shows the consumer ending up on a lower indifference curve due to the reduced purchasing power caused by the price increase of Pilates classes. If the figures were available, you would identify the income effect as the movement from the initial bundle to the new bundle on the lower indifference curve that is parallel to the new budget constraint (reflecting the unchanged income but increased price of Pilates).