Assume that Ross has $100 per month to divide between dinners at a Chinese restaurant, Song Hay and a pizzeria, Pizza Corner. Assume that going to Song Hay costs $20 and eating at Pizza Corner costs $10. Suppose Ross has 2 dinners at Song Hay and 6 dinners at Pizza Corner.

a. Draw Ross's budget line and show that he can afford the above combination.

b. Assume that Ross gets a higher pay and can now spend $200 per month. Draw the

new budget constraint.

c. As a result of the income increase, Ross decides to eat 8 times at Song Hay and 4

times at Pizza Corner. Draw the Income Consumption Curve. How would you classify the two goods i.e. dinners at Song Hay and Pizza Corner?