Suppose the Price of a Good Rises

Multiple Choice

Suppose the price of a good rises. The income effect

A) shows the change in consumption that results from the change in relative price while staying on the same indifference curve.
B) shows the change in consumption that results from the change in relative price while keeping income constant.
C) is shown by decreasing income at the new relative price in order to move from the old indifference curve to the new indifference curve after the price change.
D) is shown by increasing income at the new relative price in order to move from the old indifference curve to the new indifference curve after the price change.