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    Principles of Microeconomics
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    Exam 21: The Theory of Consumer Choice.
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    Figure 21-22 -Refer to Figure 21-22.When the Price of X Is $80,the
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Figure 21-22 -Refer to Figure 21-22.When the Price of X Is $80,the

Question 294

Question 294

Multiple Choice

Figure 21-22
Figure 21-22    -Refer to Figure 21-22.When the price of X is $80,the price of Y is $20,and the consumer's income is $160,the consumer's optimal choice is D.Then the price of X decreases to $20.The income effect can be illustrated as the movement from A)  D to E. B)  D to C. C)  C to E. D)  E to D.
-Refer to Figure 21-22.When the price of X is $80,the price of Y is $20,and the consumer's income is $160,the consumer's optimal choice is D.Then the price of X decreases to $20.The income effect can be illustrated as the movement from


A) D to E.
B) D to C.
C) C to E.
D) E to D.

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