When the Price of One Good Decreases,the Associated Substitution Effect

question 71

Multiple Choice

When the price of one good decreases,the associated substitution effect is represented by a:

• A) move from one indifference to a higher indifference curve since real income is now higher.
• B) move from one indifference to a lower indifference curve since real income is now lower.
• C) move along a given indifference curve holding real income constant.
• D) move along a given indifference curve since real income increases.

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