The Rational Consumer - End of Chapter Problem Cal "Cool" Cooper has $200 to spend on Nikes and sunglasses. The price of a pair of Nikes falls from $100 to $50 each, but the price of sunglasses remains at $50 per pair. The accompanying table gives his utility for Nikes and sunglasses. Quantity of Nikes (pairs) Utility from Nikes (utils) Utility from sunglasses Quantity of sunglasses (pairs) (utils) 0 0 0 0 400 325 700 2 600 900 825 4 1,000 4 700\f. Use the utility-maximizing principle of marginal analysis to decide what bundle Cal will purchase. pairs of Nikes pairs of sunglasses c. How does Cal's consumption of Nikes change as the price of Nikes falls? In words, describe the income effect and the substitution effect of this fall in the price of Nikes, assuming that Nikes are a normal good. As the price of Nikes falls, Cal substitutes Nikes, which are now relatively cheaper. Nikes are a normal good, so the income effect the substitution effect