The diagram shows budget lines and an indifference curve. The consumer's initial position is T. The price of good X then falls. Which combination of statements about the movements in this diagram is correct? [Figure 4.1]

1. The diagram shows budget lines and an indifference curve. The consumer's initial position is T. The price of good X then falls. Which combination of statements about the movements in this diagram is correct? [Figure 4.1] A T to Q represents perfect elasticity; T to P represents a Giffen good B T to R represents an income effect; R to S represents a substitution effect C T to U represents a substitution effect; T to Q represents a normal good D T to U represents a substitution effect; U to P represents an income effect[1]

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