Discussion Forum : Consumer Theory Vs Real Consumers
Question - Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The substitution effect is represented by the movement from point ?
Options:
A .  Z to point X
B .  X to point X
C .  X to point Z
D .  Y to point X
Answer: Option A
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

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