Multiple Choice
The substitution effect of a price change is depicted by a
A) movement along the budget constraint holding satisfaction constant.
B) shift in the budget constraint at the old prices.
C) movement along the consumer's new indifference curve at the new prices.
D) movement along the original indifference curve to the point where the marginal rate of substitution equals the price ratio for the new set of prices.
Correct Answer:

Verified
Correct Answer:
Verified
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