A-LevelEconomicsThe price system and the microeconomy9708/32 · May/June 2020 · Q61 Mark
The diagram shows two indifference curves and two budget lines for goods X and Y. [Figure 6.1] The consumer's initial position is at point F. The consumer's preferred final position becomes point H.
- (a)What does the movement from F to G represent? A the income effect of a price fall for X B the price effect of a price change for X C the substitution effect of a price fall for X D the substitution effect of a price rise for X[1]
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Mark scheme
Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.
- [1] C
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