Figure: Income and Substitution Effects 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 income effect from the price change?
A) the increase of the number of music downloads by three
B) the increase of the number of music downloads by four
C) the reduction of the number of music downloads by one
D) the reduction of the number of music downloads by three

Question

Figure: Income and Substitution Effects  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 income effect from the price change?
A) the increase of the number of music downloads by three 
B) the increase of the number of music downloads by four 
C) the reduction of the number of music downloads by one 
D) the reduction of the number of music downloads by three

Quizplus · Accepted Answer

The Answer of Figure: Income and Substitution Effects  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 income effect from the price change?
A) the increase of the number of music downloads by three 
B) the increase of the number of music downloads by four 
C) the reduction of the number of music downloads by one 
D) the reduction of the number of music downloads by three