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4 1 B If the budget line shifts from line 1 to line 2, this and consumer responds by buying less of Good B we can say: O The income effect is stronger than the substitution effect O There is no income effect O The substitution effect is stronger than the income effect O The income effect is equal to the substitution effect O There is no substitution effect

4 1 B If the budget line shifts from line 1 to line 2, this and consumer responds by buying less of Good B we can say: O The income effect is stronger than the substitution effect O There is no income effect O The substitution effect is stronger than the income effect O The income effect is equal to the substitution effect O There is no substitution effect

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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4 1 B If the budget line shifts from line 1 to line 2, this and consumer responds by buying less of Good B we can say: O The income effect is stronger than the substitution effect O There is no income effect O The substitution effect is stronger than the income effect O The income effect is equal to the substitution effect O There is no substitution effect
Transcribed Image Text:4 1 B If the budget line shifts from line 1 to line 2, this and consumer responds by buying less of Good B we can say: O The income effect is stronger than the substitution effect O There is no income effect O The substitution effect is stronger than the income effect O The income effect is equal to the substitution effect O There is no substitution effect
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