Reference: Ref 23-7 (Figure: Income and Substitution Effects) Refer to the figure. The consumer is initially in equilibrium at Point A than moves to Point B. What is the substitution effect from the price change?
A) the reduction of the number of music downloads by three
B) the reduction of the number of music downloads by four
C) the increase of the number of music downloads by one
D) the increase of the number of music downloads by three

Question

Reference: Ref 23-7 (Figure: Income and Substitution Effects) Refer to the figure. The consumer is initially in equilibrium at Point A than moves to Point B. What is the substitution effect from the price change?
A) the reduction of the number of music downloads by three 
B) the reduction of the number of music downloads by four 
C) the increase of the number of music downloads by one 
D) the increase of the number of music downloads by three

Quizplus · Accepted Answer

The Answer of  Reference: Ref 23-7 (Figure: Income and Substitution Effects) Refer to the figure. The consumer is initially in equilibrium at Point A than moves to Point B. What is the substitution effect from the price change?
A) the reduction of the number of music downloads by three 
B) the reduction of the number of music downloads by four 
C) the increase of the number of music downloads by one 
D) the increase of the number of music downloads by three

Reference: Ref 23-7 (Figure: Income and Substitution Effects) Refer to the Figure