Figure 21-23 -Refer to Figure 21-23. When the Price of X Is

question 400

Multiple Choice

Figure 21-23
-Refer to Figure 21-23. When the price of X is $80, the price of Y is $20, and the consumer's income is $160, the consumer's optimal choice is D. Then the price of X decreases to $20. The income effect can be illustrated as the movement from

• A)D to E.
• B)D to C.
• C)C to E.
• D)E to D.

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Definitions:

Coercive

A form of power or influence that involves forcing someone to do something through threats or pressure.

Reward

Something given in recognition of service, effort, or achievement.

Expert

An individual with extensive knowledge or skill in a particular area or field.

Legitimate

Something that is lawful, rightful, and in accordance with established rules, often used to describe power or authority.