budget on five round trips but no phone calls or 200 minutes of phone calls, but no round trips or any

combination of the two in between. It is easy to see all of his budget options with a little algebra. The

equation for a budget line is:

where P and Q are price and quantity of round trips (RT) and phone calls (PC) (per minute). In Jeremy’s case
the equation for the budget line is:

If we choose zero through five round trips (column 1), the table below shows how many phone minutes can

be afforded with the budget (column 3). The total utility figures are given in the table below.

Round Trips Total Utility for Trips Phone Minutes Total Utility for Minutes Total Utility

0

1

2

3

4

5

0

80

150

210

260

300

200

160

120

80

40

0

1100

1040

900

680

380

0

1100

1120

1050

890

640

300

Adding up total utility for round trips and phone minutes at different points on the budget line gives total
{"batch_upload": true, "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "title": "Principles of Microeconomics 3e", "moddate": "2022-12-07T14:23:05-06:00", "creator": "PDFMiner", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "upload_timestamp": "2026-02-07T15:37:44.339247", "creationdate": "2022-12-07T14:15:44-06:00", "producer": "Prince 14.2 (www.princexml.com)", "file_type": ".pdf", "total_pages": 597, "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "file_size_mb": 26.99, "file_name": "Microeconomics3e.pdf", "uploaded_via": "batch_uploader"}