The Substitution Effect Graphically Is Always Denoted

question 80

Multiple Choice

The substitution effect graphically is always denoted:

• A)by movement along the original indifference curve, whereas the income effect is represented by a rotation of the budget line.
• B)by moving in the direction of the item that is becoming relatively more expensive.
• C)by moving in the direction of the item that is becoming relatively cheaper and the income effect is always denoted by a rotating budget line.
• D)by movement along the original indifference curve, whereas the income effect is represented by a parallel shift of the budget line.

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Definitions:

Thoracic Cage

The bony frame formed by the ribs, spine, and sternum, which encloses and protects the organs of the thorax.

Thoracic Vertebrae

The twelve vertebrae located in the middle portion of the vertebral column, corresponding to the chest area.

Sternum

The flat bone located in the center of the chest, connecting the rib bones and protecting vital organs in the thoracic cavity.

Triangular

Having the shape of a triangle; involving three points or elements.