Figure: Indifference Curves and Consumption Bundles) Look at the figure Indifference

Curves and Consumption Bundles. In the figure, the initial optimum is at

a.

The price of

hot dogs increases, and the new equilibrium point is

c.

The change in hot dog

consumption due to the income effect of the price change is:

A)

H

2

to

H

1.

B)

H

3

to

H

2.

C)

H

1

to

H

2.

D)

H

3

to

H

1