Refer to Figure 21-12. Suppose that a consumer is originally at point R. Then the price of good X decreases. Which of the following represent the substitution effect of the price decrease?
The movement from point R to point T
The movement from point R to point S
The movement from point T to point S
The movement from point T to point R
All of the following are properties of typical indifference curves except
indifference curves are downward sloping.
indifference curves are bowed outward.
indifference curves do not cross.
higher indifference curves are preferred to lower ones.