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7. Refer to the indifference curve/budget line diagram below. BLI 0 IC1 d ICa Suppose that a consumer initially faces budget line BL1, and thus
7. Refer to the indifference curve/budget line diagram below. BLI 0 IC1 d ICa Suppose that a consumer initially faces budget line BL1, and thus is able to achieve the utility level associated with IC1. If py increases, then the substitution effect is the movement from and the income effect is the movement from a) e to d; d to c. b) e to c; e to d. c ) e to c; c to d. d) e to f; f to d
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