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Question
According to the following figure, the movement from point (4,3) to point A is a function of ________, while the subsequent movement from point A to point (2,3) results from ________.
a. an increase in the price of pizza; a decrease in the price of Pepsi
b. a decrease in the price of pizza; an increase in the price of Pepsi
c. a combination of the substitution and real-income effects; a decrease in the price of pizza
d. the substitution effect alone; the real-income effect alone
e. the real-income effect alone; the substitution effect alone
Answer
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