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(Figure: Quantity of Goods Y and X III) Because of the Income

Question 112

Multiple Choice

(Figure: Quantity of Goods Y and X III) Because of the income effect associated with the decrease in the price of good X, the quantity of good X purchased: (Figure: Quantity of Goods Y and X III)  Because of the income effect associated with the decrease in the price of good X, the quantity of good X purchased:   A)  increases from 3 to 5. B)  decreases from 5 to 4. C)  decreases from 3 to 2. D)  decreases from 5 to 2.


A) increases from 3 to 5.
B) decreases from 5 to 4.
C) decreases from 3 to 2.
D) decreases from 5 to 2.

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