Figure 21-22 E C 2 3 6 7 8 9 Refer to Figure 21-22. When the price of X is $80, the price of Y is $20, and the consumer's income is $160, the consumer's optimal choice is D. Then the price of X decreases to $20. The income effect can be illustrated as the movement from D to E. OD to C. O C to E. O E to D. IC2 IC1

Principles of Microeconomics (MindTap Course List)
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Chapter21: The Theory Of Consumer Choice
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Refer to Figure 21-22. When the price of X is $80, the price of Y is $20, and the consumer’s income is $160, the consumer’s optimal choice is D. Then the price of X decreases to $20. The income effect can be illustrated as the movement from Group of answer choices D to E. D to C. C to E. E to D.
Figure 21-22
3
5
6
7
8
9 X
Refer to Figure 21-22. When the price of X is $80, the price of Y is $20, and the consumer's income
is $160, the consumer's optimal choice is D. Then the price of X decreases to $20. The income
effect can be illustrated as the movement from
D to E.
OD to C.
O C to E.
O E to D.
E
IC2
IC1
Transcribed Image Text:Figure 21-22 3 5 6 7 8 9 X Refer to Figure 21-22. When the price of X is $80, the price of Y is $20, and the consumer's income is $160, the consumer's optimal choice is D. Then the price of X decreases to $20. The income effect can be illustrated as the movement from D to E. OD to C. O C to E. O E to D. E IC2 IC1
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