In the diagram below where U₀and U₁are indifference curves, suppose the budget line shifts so that the consumer's equilibrium position changes from point A to point B. This means that ....

In the diagram below where U0 and U1 are indifference curves, suppose the budget line shifts so that the consumer's equilibrium position changes from point A to point B. This means that O the price of Y has increased, the income and substitution effects will both cause the consumer to buy less of Y. O the price of Y has decreased, the income and substitution effects will both induce the consumer to buy more of Y. Q) the price of Y has decreased, the income effect will cause the consumer to buy more of Y and the substitution effect will cause the consumer to buy less. O the price of Y has increased, the income effect will cause the consumer to buy less of Y and the substitution will cause him to buy more