the right the consumer's original budget line is L1, and the consumer buys the amount of good Y at point A. Then the price of good Y decreases dramatically so that the consumer's new budget line shifts to L2. After the price decrease the consumer buys the amount of good Y at point B. The substitution effect due to the price change is the movement from____to A. K1; K3 B. K1; K2 C. K2 ; K3 D. K3; K2 K₁ K₂ K₁ L2 L1, B U₂ U₁

the right the consumer's original budget line is L1, and the consumer buys the amount of good Y at point A. Then the price of good Y decreases dramatically so that the consumer's new budget line shifts to L2. After the price decrease the consumer buys the amount of good Y at point B. The substitution effect due to the price change is the movement from____to A. K1; K3 B. K1; K2 C. K2 ; K3 D. K3; K2 K₁ K₂ K₁ L2 L1, B U₂ U₁

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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