# Measuring income effect before knowing substitution effect

Suppose on the x axis we have shelter and on the y axis we have composite goods. Now, if the price of shelter increases, the optimal bundle changes from point A to point D. Standard textbook tells me to draw a line parallel to the new budget line B1, which is tangent to the indifference curve I0. In this way we can get the substitution effect. The income effect follows. My question is, can we reverse the two procedures and measure the income effect first by drawing a line parallel to the original budget line and tangent to the new indifference line? Thanks!

• Is the price of the shelter decreasing or increasing? The x intercept decreases from curve $B_0$ to curve $B_1$. So shouldn't it be increasing? – Dayne Oct 1 '20 at 16:19
• @Dayne You are correct. Thank you for pointing that out! – Gracie Oct 1 '20 at 23:22