According to Hicks substitution effect is
A)the movement to a higher indifference curve
B)the movement to a lower indifference curve
C)the movement along an indifference curve
D)the movement to a decreased consumption

Question

Quizplus · Accepted Answer

The substitution effect, according to Hicks, describes the movement along an indifference curve as a consumer adjusts their consumption of two goods in response to a change in relative prices, keeping utility constant.

According to Hicks Substitution Effect Is