Figure 6 presents a consumer's original utility-maximizing market basket of two goods for clothing and food. But following a price change in the market, the consumer's utility-maximizing market basket moved from point A to point B. From this situation, what is the substitution effect (SE) on the quantity of clothing purchased? Clothing (units per week) Ci C2 B C3 Food (units per week) Figure 6 O a. the change from C2 to Cl. Ob. the change from C3 to C1. O c. the change from C3 to C2. O d. the change from Cl to C2
Figure 6 presents a consumer's original utility-maximizing market basket of two goods for clothing and food. But following a price change in the market, the consumer's utility-maximizing market basket moved from point A to point B. From this situation, what is the substitution effect (SE) on the quantity of clothing purchased? Clothing (units per week) Ci C2 B C3 Food (units per week) Figure 6 O a. the change from C2 to Cl. Ob. the change from C3 to C1. O c. the change from C3 to C2. O d. the change from Cl to C2
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 4SQP
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Transcribed Image Text:Figure 6 presents a consumer's original utility-maximizing market basket of two goods for clothing and food. But
following a price change in the market, the consumer's utility-maximizing market basket moved from point A to
point B. From this situation, what is the substitution effect (SE) on the quantity of clothing purchased?
Clothing
(units per week)
Ci
C2
B
Food
(units per week)
Figure 6
O a. the change from C2 to Cl.
Ob.
the change from C3 to C1.
O c. the change from C3 to C2.
O d. the change from Cl to C2
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