6A-5 Income and Substitution Effects FIGURE 6-11

Multiple Choice

6A-5 Income and Substitution Effects FIGURE 6-11
-Refer to Figure 6-11.The line joining points E₁ and E₃ is known as ________,which shows how ________.

A) a price consumption line; consumption changes as one price changes,with money income held constant
B) an income consumption line; consumption changes as income changes,with relative prices held constant
C) a price consumption line; consumption changes as money income and relative prices change
D) an income consumption line; consumption changes with changing relative prices and constant income