Multiple Choice
Figure 21-20
-Refer to Figure 21-20.Suppose that a consumer is originally at point R.Then the price of good X decreases.Which of the following represents the income effect of the price decrease?
A) the movement from point R to point S
B) the movement from point R to point T
C) the movement from point T to point S
D) None of the above is correct.
Correct Answer:

Verified
Correct Answer:
Verified
Q12: Indifference curves tend to be bowed inward
Q72: Steak and pasta are normal goods.When the
Q77: When economists describe preferences, they often use
Q267: How are the following three questions related:
Q293: Suppose a consumer spends her income on
Q354: Figure 21-12 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 21-12
Q356: The consumer's optimal choice is the one
Q380: Assume that a consumer's indifference curve is
Q442: If we observe that a consumer's budget
Q491: The two "goods" used when economists analyze