The diagram uses indifference curves and budget lines to examine the impact of a change in the price of wheat. A change in price shifts the consumption of maize and wheat from S to T.

indifference curve and budget line diagram with maize on the vertical axis and wheat on the horizontal axis; budget line 1 (the shallower line, reaching further along the wheat axis) is tangent to indifference curve IC1 at point S, with point U marked higher up the same IC1 curve; a dashed line, drawn with the same slope as budget line 2 and starting lower on the maize axis, runs close to and just above IC1 near U; the steeper budget line 2 (reaching a nearer point on the wheat axis, sharing the same maize-axis intercept as budget line 1) is tangent to indifference curve IC2 at point T, with point W marked just to the right of T where budget line 2 and the dashed line run close together

Which combination of statements correctly explains what the diagram shows?

	statement 1	statement 2
A	the price of wheat has decreased	the substitution effect is shown by the shift from S to U
B	the price of wheat has increased	wheat is a normal good
C	wheat is a Giffen good	the income effect is shown by the shift from S to W
D	wheat is a Giffen good	the substitution effect outweighs the income effect