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

question 539

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 substitution effect can be illustrated as the movement from

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

---

Definitions:

Maximum Rent

Government-imposed limits on the amount a landlord can charge for leasing a property, typically to make housing more affordable.

Government

The governing body of a nation, state, or community, usually responsible for policymaking, administration, and regulation.

Units

Basic quantities or measurements used to express variables, such as meters for length or kilograms for weight.

Price Ceiling

A government-imposed limit on the price charged for a product, aimed at keeping prices from rising too high.