Question 3 3 pts Nancy and Shan Chen live in San Francisco, and enjoy going out to fancy restaurants for dinner, and to coffee shops for breakfast. On the following graph, the purple curves U1 and U2 represent two of their indifference curves for dinners and breakfasts. They have $1,000 per month available to spend on eating out. The price of a breakfast is always $10. Each labeled point represents the tangency between a budget constraint and the corresponding indifference curve. The initial budget constraint (301) shows the Chens' budget constraint when the price of a fancy dinner is $100. At this price, Nancy and Shan would choose to consume ve dinners. Suppose that the price of a fancy dinner decreases to $50, shifting their budget constraint to 302 , which represents a new relative price of five breakfasts per dinner. (Hint: The blue line labeled H is parallel to 3C2 and tangent to U] at point S.) Complete the following table by indicating which point movement represents the substitution effect and income effect for dinners when the price decreases from $100 to $50. Consumption Change Fancy Dinners Represented by... {Quantity of dinners} Substitution effect [59'9\"] l Salectl Income effect [59'9\"] l Select] In this case, the price decrease of dinners causes the Chens' real income to [salad] V . Because of the change to Nancy and Shan's real income and the direction of the income effect, dinners are [Select] V for the Chens