Sam Has $200 a Month to Spend on Either Tanning

question 27

Multiple Choice

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

• A) to increase, since both effects predict an increase.
• B) to decrease, since both effects predict a decrease.
• C) to change, but the direction is dependent upon which effect is stronger.
• D) It is impossible to say what will happen without more information.

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Definitions:

United States

A country in North America consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

Sexual Assault Victims

Individuals who have experienced sexual assault, encompassing a range of non-consensual sexual acts, facing diverse recovery and support needs.

Range of Emotions

The spectrum of human emotions that can be experienced, ranging from happiness and joy to sadness, anger, and fear, reflective of an individual's response to life events.

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, whether real or imagined.