In the indifference curve diagram, point M shows the consumer’s starting equilibrium, while MN represents the substitution effect resulting from a decrease in the price of good X. If good X is a Giffen good, which point will represent the consumer’s new equilibrium after the price of good X falls?
- APoint I (see figure)
- BPoint J (see figure)
- CPoint K (see figure)
- DPoint L (see figure)