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Kevin and Maria Singh live in Miami and enjoy going out to fancy restaurants for dinner and to coffee shops for breakfast. On the following graph, the purple curves IC1 and IC2 represent two of their indifference curves for dinners and breakfasts. They have $800 per month available to spend on eating out. The price of a breakfast is always $10. Each labeled point represents the tangency between a budget constraint and the corresponding indifference curve. The initial budget constraint (BC1) shows the Singhs' budget constraint when the price of a fancy dinner is $160. At this price, Kevin and Maria would choose to consume two dinners. Suppose that the price of a fancy dinner decreases to $40, shifting their budget constraint to BC2, which represents a new relative price of four breakfasts per dinner. (Hint: The blue line labeled CB is parallel to BC2 and tangent to IC1 at point M.) In order to remain as happy as they were before the price decrease-that is, to consume at some point on the same indifference curve as they were on initially (I11)-the Singhs' income spent on dinners and breakfast would now only have to be Hower, in reality, rather than maintaining their original level of utility, the Singhs choose the optimal bundle along their new budget constraint. At this point, they are off than before the price change in dinners. Complete the following table by indicating which point movement represents the Hicksian substitution effect and income effect for dinners when the price decreases from $160 to $40. Then indicate whether each effect is positive or negative in this case. Complete the following table by indicating which point movement represents the Hicksian substitution effect and income effect for dinners when the price decreases from $160 to $40. Then indicate whether each effect is positive or negative in this case. Complete the following table by indicating which point movement represents the Hicksian substitution effect and income effect for dinners when the price decreases from $160 to $40. Then indicate whether each effect is positive or negative in this case. In this case, the price decrease of dinners causes the Singhs' real income to Because of the change to Kevin and Maria's real income and the direction of the income effect, dinners are for the Singhs. Kevin and Maria Singh live in Miami and enjoy going out to fancy restaurants for dinner and to coffee shops for breakfast. On the following graph, the purple curves IC1 and IC2 represent two of their indifference curves for dinners and breakfasts. They have $800 per month available to spend on eating out. The price of a breakfast is always $10. Each labeled point represents the tangency between a budget constraint and the corresponding indifference curve. The initial budget constraint (BC1) shows the Singhs' budget constraint when the price of a fancy dinner is $160. At this price, Kevin and Maria would choose to consume two dinners. Suppose that the price of a fancy dinner decreases to $40, shifting their budget constraint to BC2, which represents a new relative price of four breakfasts per dinner. (Hint: The blue line labeled CB is parallel to BC2 and tangent to IC1 at point M.) In order to remain as happy as they were before the price decrease-that is, to consume at some point on the same indifference curve as they were on initially (I11)-the Singhs' income spent on dinners and breakfast would now only have to be Hower, in reality, rather than maintaining their original level of utility, the Singhs choose the optimal bundle along their new budget constraint. At this point, they are off than before the price change in dinners. Complete the following table by indicating which point movement represents the Hicksian substitution effect and income effect for dinners when the price decreases from $160 to $40. Then indicate whether each effect is positive or negative in this case. Complete the following table by indicating which point movement represents the Hicksian substitution effect and income effect for dinners when the price decreases from $160 to $40. Then indicate whether each effect is positive or negative in this case. Complete the following table by indicating which point movement represents the Hicksian substitution effect and income effect for dinners when the price decreases from $160 to $40. Then indicate whether each effect is positive or negative in this case. In this case, the price decrease of dinners causes the Singhs' real income to Because of the change to Kevin and Maria's real income and the direction of the income effect, dinners are for the Singhs