Short Answer
The following figure shows a portion of a consumer's indifference map and budget lines. The price of good Y is $7 and the consumer's income is $700.
Let the consumer begin in utility maximizing equilibrium at point A on indifference curve I. Next the price of good X changes so that the consumer moves to a new utility maximizing equilibrium at point B on indifference curve II.
-The substitution effect of the change in the price of X is ______; the income effect is ______; the total effect is ______.
Correct Answer:
Verified
Correct Answer:
Verified
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