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-The Figure Above Illustrates Elijah's Preferences

Question 131

Multiple Choice

  -The figure above illustrates Elijah's preferences. He is currently at point A. The price of pizza decreases. The move from point A to point _______ is the substitution effect and the move from point _______ to point _______ is the income effect. A)  B; B; C B)  E; E; C C)  C; C; B D)  D; D; B
-The figure above illustrates Elijah's preferences. He is currently at point A. The price of pizza decreases. The move from point A to point _______ is the substitution effect and the move from point _______ to point _______ is the income effect.


A) B; B; C
B) E; E; C
C) C; C; B
D) D; D; B

Correct Answer:

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