Multiple Choice
Use the following to answer questions:
Figure: Indifference Curves and Consumption Bundles
-(Figure: Indifference Curves and Consumption Bundles) Look at the figure Indifference Curves and Consumption Bundles. In the figure, the initial optimum is at a. The price of hot dogs now increases. The change in hot dog consumption due to the substitution effect is:
A) H3 to H2.
B) H3 to H1.
C) H2 to H1.
D) H1 to H2.
Correct Answer:

Verified
Correct Answer:
Verified
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