Seppo consumes brandy and saunas.Neither is an inferior good.Seppo has a total of $30 a day and 6 hours a day to spend on brandy and saunas.Each brandy costs $2 and takes half an hour to consume.Each sauna costs $1 and takes 1 hour to consume.(It is, unfortunately, impossible to consume a brandy in the sauna.)Seppo suddenly inherits a lot of money and now has $50 a day to spend on brandy and saunas.Since Seppo is a rational consumer, he will
A)increase brandy consumption only.
B)increase sauna consumption only.
C)increase consumption of both.
D)consume the same amounts of both goods as before.
E)We can't tell since we are told nothing about his indifference curves.

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The Answer of Seppo consumes brandy and saunas.Neither is an inferior good.Seppo has a total of $30 a day and 6 hours a day to spend on brandy and saunas.Each brandy costs $2 and takes half an hour to consume.Each sauna costs $1 and takes 1 hour to consume.(It is, unfortunately, impossible to consume a brandy in the sauna.)Seppo suddenly inherits a lot of money and now has $50 a day to spend on brandy and saunas.Since Seppo is a rational consumer, he will
A)increase brandy consumption only.
B)increase sauna consumption only.
C)increase consumption of both.
D)consume the same amounts of both goods as before.
E)We can't tell since we are told nothing about his indifference curves.

Seppo Consumes Brandy and Saunas