The consumer is initially at A on budget line RS.With a decrease in the price of food,the consumer moves to B. The resulting change in food purchased can be broken down into a substitution effect F E(associated with a move fromA to D)and an income effect EF,(associated with a move from D to B). In this case,food is an inferior good because the income effect is negative.However,because the substitution effect exceeds the income effect,the decrease in the price of food leads to an increase in the quantity of food demanded.The consumer is initially at A on budget line RS. With a decrease in the price of food, the consumer moves to B. The resulting change in food purchased can be broken down into a substitution effect F1E (associated with a move from A to D) and an income effect EF2 (associated with a move from D to B). In this case, food is an inferior good because the income effect is negative. However, because the substitution effect exceeds the income effect, the decrease in the price of food leads to an increase in the quantity of food demanded