Use the Following to Answer Question

question 31

Multiple Choice

Use the following to answer question:
-(Figure: Kristin's Budget Line) Use Figure Kristin's Budget Line.The price of a cup of cappuccino is $3,and the price of an apple is $1.Suppose Kristin initially consumes 10 cups of cappuccino and 30 apples.Then the price of apples increases to $3 each and the price of cappuccino remains unchanged.As a result of this price change,Kristin's optimal consumption bundle is now 9 cups of cappuccino and 11 apples.If Kristin's income could be adjusted so that she could maintain her initial level of utility after the price change,she would consume more cappuccino and more apples.This reflects:

• A)a substitution effect from the price change and an income effect from the income change.
• B)the substitution effect alone.
• C)the income effect alone.
• D)neither a substitution nor an income effect.

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Definitions:

Communication Medium

The method or tool used to deliver messages between a sender and receiver, such as email, social media, or face-to-face conversations.

Journalistic Approach

A method of investigation and reporting that seeks to inform the public by gathering, assessing, creating, and presenting news and information.

In-Person

An interaction or event that takes place face-to-face in the same physical location, as opposed to being conducted digitally or online.

Digital

Pertaining to technology that uses discrete, discontinuous representations of information or data, usually binary in nature.