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Refer to Figure 6

Question 15

Multiple Choice

Refer to Figure 6.1.Assume that L1 represents the budget line before a price change.The substitution effect is shown by the movement: Refer to Figure 6.1.Assume that L1 represents the budget line before a price change.The substitution effect is shown by the movement:   A) from bundle A to bundle C. B) from bundle A to bundle B. C) from bundle B to bundle C. D) from bundle C to bundle B.


A) from bundle A to bundle C.
B) from bundle A to bundle B.
C) from bundle B to bundle C.
D) from bundle C to bundle B.

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