A consumer allocates all income to two goods, Y and X, and is located at E. The price of X decreases while the price of Y stays the same. The diagram uses indifference curves and budget lines to work out the price, income and substitution effects linked to this change in price. Which distance represents the income effect of this price change?
- AX1X2
- BX1X4
- CX2X4
- DX5X6