Figure 65 Manuri Has $300 to Spend on Pilates Classes

question 75

Multiple Choice

Figure 6.5 Manuri has $300 to spend on Pilates classes and Yoga classes.The price of a group Pilates class is $20 and the price of a group Yoga class is $10.Manuri's optimal bundle is given by 'A' in Figure 6-5.
-Refer to Figure 6.5.Suppose the price of Pilates sessions rises to $30 while income and the price of Yoga sessions remain unchanged.The substitution effect of this price change is represented by the movement from

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

---

Definitions:

Profit Maximization

The process by which a business seeks to achieve the greatest possible profit with the least possible cost and risk.

Industrial Waste

Waste produced by industrial activities, including chemicals and by-products that can be hazardous to the environment and human health.

Property Rights

Legal rights to possess, use, and dispose of assets freely. Property rights secure ownership and encourage investment by protecting and enforcing the legal ownership of resources.

Environmental Regulators

Authorities or agencies responsible for enforcing laws and regulations intended to protect the environment from harmful industrial or commercial activities.