Figure 6.1 -Refer to Figure 6.1.When the Price of Meat Pies Increases

Multiple Choice

Figure 6.1
-Refer to Figure 6.1.When the price of meat pies increases from $5.00 to $5.75, quantity demanded decreases from Q₁ to Q₀.This change in quantity demanded is due to

A) the price and output effects.
B) the income and substitution effects.
C) the fact that marginal willingness to pay falls.
D) the law of diminishing marginal utility.