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Figure 1.2.2 2] Refer to Figure 4.2.2 above. Starting from point A, after the price of food decreases, the quantity 5] of food purchased: A]

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Figure 1.2.2 2] Refer to Figure 4.2.2 above. Starting from point A, after the price of food decreases, the quantity 5"] of food purchased: A] increases, due to the income effect but decreases due to the substitution effect. B] decreases. C} increases from A to B due to the income effect, and then to C due to the substitution effect. D) increases, due to the substitution effect but decreases due to the income effect. 3] Refer to Figure 4.2.2 above. The eect of a decrease in the price of food, as depicted in the figure, 3] leads us to believe that: A] both food and clothing are normal goods. B} food in an inferior good and clothing a normal good. C} both food and clothing are inferior goods. D) foodinanormalgoodandclo'lganinferiorgood

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