Jim has made his best affordable choice of muffins and coffee. He spends all of hisincome on 10 muffins at $1 each and 20 cups of coffee at $2 each. Now the price of amuffin rises to $1.50 and the...

Jim has made his best affordable choice of muffins and coffee. He spends all of hisincome on 10 muffins at $1 each and 20 cups of coffee at $2 each. Now the price of amuffin rises to $1.50 and the price of coffee falls to $1.75 a cup. a. Will Jim now be ableand want to buy 10 muffins and 20 coffees? b. Which situation does Jim prefer: muffinsat $1 and coffee at $2 a cup or muffins at $1.50 and coffee at $1.75 a cup? c. If Jimchanges the quantities that he buys, will he buy more or fewer muffins and more or lesscoffee? Explain your answer. d. When the prices change, will there be an income effect, asubstitution effect, or both at work? Explain your answer.