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Figure 65 Manuri Has $300 to Spend on Pilates Classes

Question 75

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Figure 6.5 Figure 6.5   Manuri has $300 to spend on Pilates classes and Yoga classes.The price of a group Pilates class is $20 and the price of a group Yoga class is $10.Manuri's optimal bundle is given by 'A' in Figure 6-5. -Refer to Figure 6.5.Suppose the price of Pilates sessions rises to $30 while income and the price of Yoga sessions remain unchanged.The substitution effect of this price change is represented by the movement from A) A to B. B) A to C. C) A to D. D) D to B. Manuri has $300 to spend on Pilates classes and Yoga classes.The price of a group Pilates class is $20 and the price of a group Yoga class is $10.Manuri's optimal bundle is given by 'A' in Figure 6-5.
-Refer to Figure 6.5.Suppose the price of Pilates sessions rises to $30 while income and the price of Yoga sessions remain unchanged.The substitution effect of this price change is represented by the movement from


A) A to B.
B) A to C.
C) A to D.
D) D to B.

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