The diagram illustrates how a price change affects the equilibrium of a single consumer, shifting from E1 to E2. What can be deduced from the diagram about the price change, the substitution effect and the income effect?
- Aprice of X falls; substitution effect: positive; income effect: positive
- Bprice of X falls; substitution effect: positive; income effect: negative
- Cprice of Y rises; substitution effect: negative; income effect: positive
- Dprice of Y rises; substitution effect: negative; income effect: negative