When the price of a good changes, the substitution effect can found by comparing the equilibrium quantities purchased:
A)on the new budget line and a line parallel to the old budget line tangent to the new indifference curve.
B)on the old budget line and on the new budget line.
C)the new budget line and a line parallel to the new budget line tangent to the old indifference curve.
D)on the old budget line and a line parallel to the new budget line tangent to the old indifference curve.

Question

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The Answer of When the price of a good changes, the substitution effect can found by comparing the equilibrium quantities purchased:
A)on the new budget line and a line parallel to the old budget line tangent to the new indifference curve.
B)on the old budget line and on the new budget line.
C)the new budget line and a line parallel to the new budget line tangent to the old indifference curve.
D)on the old budget line and a line parallel to the new budget line tangent to the old indifference curve.

When the Price of a Good Changes, the Substitution Effect