Figure 10-1 -Refer to Figure 10-1. When the Price of Hoagies Increases

question 152

Multiple Choice

Figure 10-1
-Refer to Figure 10-1. When the price of hoagies increases from $5.00 to $5.75, quantity demanded decreases from Q₁ to Q₀. This change in quantity demanded is due to

• A) the price and output effects.
• B) the income and substitution effects.
• C) the fact that marginal willingness to pay falls.
• D) the law of diminishing marginal utility.

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