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Figure: Income and Substitution Effects Reference: Ref 23-7 (Figure

Question 11

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Figure: Income and Substitution Effects 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 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

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