Exhibit 5A-2 -Refer to Exhibit 5A-2. If the Individual Starts at Point

Multiple Choice

Exhibit 5A-2
-Refer to Exhibit 5A-2. If the individual starts at point A and moves to point B as a result of an increase in the price of Y, then the income effect

A) decreases the consumption of both X and Y.
B) has no effect on the consumption of either X or Y.
C) increases the consumption of both X and Y.
D) decreases the consumption of X but increases the consumption of Y.
E) increases the consumption of X but decreases the consumption of Y.