Income and Substitution Effect [12 pts] Tom loves surfing (Surf) and Sailing (Sail). His utility function is: U(Surf, Sail) =Surf Sail3. His yearly allowance is $16,000 for both goods. Now assume that he faces the following prices per session (in $): Psurf=10 and Psail=80. Find Tom's optimal consumption bundle of Surf and Sail sessions, given prices, allowance, and utility function. [3 pts] With decreasing costs of fibre glass, surfboard companies have lower costs to produce surfboards. Therefore surfboard prices drop and therefore the price for each surf session from $10 to $5. Find the new optimal consumption bundle. [3 pts]. Identify the total effect of the price change and decompose it into the substitution effect and the income effect. [6 pts]