8-10 TRUE OR FALSE ONLY

Use this for #8 and #9. . - Y Suppose that the initial optimal point of consumption is Bundle A, and the new optimal point of consumption is Bundle C. 8. The change in consumption of goods x and y from Bundle A to Bundle C is brought about by a decrease in price of good y. 9. The substitution effect is shown by the movement from Bundle A to Bundle B due to a change in purchasing power of the consumer. 10. The marginal effect shows the change in consumption brought about by a change in the relative price