This week Sara’s income falls from $12 to $9 a week, while the price of popcorn is unchanged at $3 a bag and the price of a smoothie is unchanged at $3. g. What is the effect of the fall in Sara’s income on her real income in terms of smoothies and in terms of popcorn? h. What is the effect of the fall in Sara’s income on the relative price of a smoothie in terms of popcorn? What is the slope of Sara’s new budget line if it is drawn with smoothies on the x-axis?

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