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