Use the Following to Answer Questions

question 126

Multiple Choice

Use the following to answer questions :
-(Figure: Income and Substitution Effects) Use Figure Income and Substitution Effects.Carlos is consuming his optimal consumption bundle at point A when the price of gasoline falls.The movement from K₂ to K₃ reflects the _____ the decrease in the price of gasoline.

• A) total change in quantity demanded due to
• B) income effect of
• C) substitution effect of
• D) income and substitution effects of

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Definitions:

Crank

To rotate an engine with the objective of starting it.

Digital Multimeter (DMM)

An electronic measuring instrument that combines multiple measurement functions in one unit.

Transistors

Semiconductor devices used to amplify or switch electronic signals and electrical power.

Photodiode

A semiconductor device that converts light into electrical current, commonly used in optical communication systems and light sensing.