Final answer:
Lori's utility-maximizing behavior in response to a decrease in the price of ski passes would lead to an increase in the marginal utility per dollar spent on ski passes and cause her to purchase more ski passes and fewer golf games. For Kimberly, an increase in income would typically result in her purchasing more of both goods she enjoys.
Step-by-step explanation:
If the price of ski passes decreases, holding other factors constant, the marginal utility per dollar spent on ski passes will increase. To maximize her utility, Lori will buy more ski passes and less golf games. Therefore, the correct answer is C. Increase; ski passes; golf games.
When the income to spend on goods rises, resulting in a shift of the budget constraint to the right, the utility-maximizing choice is likely to change. If both goods are normal goods, we would expect Kimberly to purchase more of both concert tickets and overnight getaways. The new choice on the budget line will represent higher quantities of goods compared to her original choice, as she seeks to maximize her utility with the increased budget.