Final answer:
The income effect on good x is negative, meaning Tom will consume less of good x as his income increases.The correct answer is option A.
Step-by-step explanation:
The income effect on good x can be calculated by determining the change in quantity consumed of good x as a result of the change in income. In this case, the price of good x has risen to 4.
If Tom's preferences are such that the quantity of x demanded decreases as income increases, then the income effect on x is negative. This means that as Tom's income increases, he will consume less of good x.
Based on the given options, the correct answer would be a. -4.09 as it represents the income effect on x when the price of x rises to 4.The correct answer is option A.