Use the Following Figure to Answer the Question : Figure

question 71

Multiple Choice

Use the following figure to answer the question : Figure 16-1 :shows the isoquants,IQ₁ and IQ₂,for a competitive firm.

-In Figure 16-1.The move from point A to point B represents the _____ of an input price change.

• A)substitution effect
• B)output effect
• C)income effect
• D)effect of diminishing returns