Sam Has $200 a Month to Spend on Two Normal

question 72

Multiple Choice

Sam has $200 a month to spend on two normal goods-tanning sessions and 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 each month. If the price of a round of golf drops to $20, the income and substitution effects will cause Sam's consumption of tanning sessions to:

• A)increase.
• B)decrease.
• C)change, but the direction is dependent upon which effect is stronger.
• D)This cannot be answered without more information.

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Definitions:

Single Mother

A woman raising her child(ren) without the involvement of the child's father or another partner in the parenting role.

Rent

The payment made by a tenant to a landlord for the use of a property, usually determined on a monthly basis.

Homelessness

Social category that includes anyone who cannot obtain and sustain long-term, adequate, and risk-free shelter, for any reason.

Mental Illness

A wide range of mental health conditions that affect mood, thinking, and behavior, often requiring clinical diagnosis and treatment.