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-Consider the Change in the Price of a Book Depicted

Question 104

Multiple Choice

-Consider the change in the price of a book depicted in the above figure. The original budget line is BC. The new budget line is BD. As a result of this price change, the substitution effect can be represented by a movement from A) point A to point F. B) point F to point G. C) point A to point G. D) point A to point E.
-Consider the change in the price of a book depicted in the above figure. The original budget line is BC. The new budget line is BD. As a result of this price change, the substitution effect can be represented by a movement from


A) point A to point F.
B) point F to point G.
C) point A to point G.
D) point A to point E.

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