Refer to Figure 6.1. Assume that L1 represents the budget line before a price change. Point C represents the:





A. uncompensated effect on an increase in the price of soup.



B. compensated effect on a decrease in the price of soup.



C. uncompensated effect on a decrease in the price of soup.



D. compensated effect on an increase in the price of soup.


D. compensated effect on an increase in the price of soup.

Economics

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a. True b. False Indicate whether the statement is true or false

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