The consumer has bought the best affordable combination of goods. How does a change in the market price of one of the goods bought change the consumer's best affordable point?
The change in the price of the good has

Question

The consumer has bought the best affordable combination of goods. How does a change in the market price of one of the goods bought change the consumer's best affordable point? 
 The change in the price of the good has

Accepted Answer

a substitution effect along the initial indifference curve and an income effect as the consumer moves between indifference curves.

Answer

an income effect but no substitution effect.

Answer

an income effect as the consumer moves along the initial indifference curve and a substitution effect as the consumer moves to another indifference curve.

Answer

a substitution effect as the consumer moves to another indifference curve.

Answer

a substitution effect, but no income effect.

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The consumer has bought the best affordable combination of goods. How does a cha...

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