Question: The graph below represents consumer choices in relation to consumption of goods X and Y with certain budget constraints and indifference curves.This graph portrays a

  1. The graph below represents consumer choices in relation to consumption of goods X and Y with certain budget constraints and indifference curves.This graph portrays a decrease in the price of good Y. What is the value of the total effect of the price change on consumption of good Y andgood X?

2.What is the value of the substitution effect of the price change on consumption of good Y andgood X?

3.What is the value of the income effect of the price change on consumption of good Y andgood X?

The graph below represents consumer choices in relation to consumption of goods

QY F D 13 10 4 10 17 19 E Qx

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