Sam has $200 a month to spend on two normal goodstanning sessions or rounds of golf Tanning sessions are $20 each, and a round of golf is $40 Sam currently consumes six tanning sessions and two rounds of golf If the price of a round of golf drops to $20, the income effect Multiple Choice 20 tanning sessions and 8 rounds of golf 10 tanning sessions and 5 rounds of golf 10 tanning sessions and 4 rounds of golf 5 Tanning sessions and 2 rounds of golf Multiple Choice Dana will buy more hairbands now because they are relatively less expensive Dana will be able to buy less of both goods Dana will derive more utility from each item, because she values each one more now that she's poorer All are correct Q earrings 4 3 2 1 4 6 8 Q hairbands Assume the graph shown represents Dana's budget constraint If Dana's income to spend on these two items decreased, which of the following could be said

Question: Sam has $200 a month to spend on two normal goodstanning sessions or rounds of golf. Tanning sessions are $20 each, and a round of

Sam has $200 a month to spend on two normal goods—tanning sessions or rounds of golf. Tanning sessions are $20 each, and a round of golf is $40. Sam currently consumes six tanning sessions and two rounds of golf. If the price of a round of golf drops to $20, the income effect:

Multiple Choice

20 tanning sessions and 8 rounds of golf.
10 tanning sessions and 5 rounds of golf.
10 tanning sessions and 4 rounds of golf.
5 Tanning sessions and 2 rounds of golf.

Q earrings 54 32 12 46 8 Q hairbands Assume the graph shown represents Danas budget constraint. If Danas income to spen

Multiple Choice

Dana will buy more hairbands now because they are relatively less expensive.
Dana will be able to buy less of both goods.
Dana will derive more utility from each item, because she values each one more now that she's poorer.
All are correct.

Q earrings 4 3 2 1 4 6 8 Q hairbands Assume the graph shown represents Dana's budget constraint. If Dana's income to spend on these two items decreased, which of the following could be said?

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