6.3 shows a budget constraint that represents Kimberly’s choice between concert tickets at $50 each and

getting away overnight to a bed-and-breakfast for $200 per night. Kimberly has $1,000 per year to spend

between these two choices. After thinking about her total utility and marginal utility and applying the decision

rule that the ratio of the marginal utilities to the prices should be equal between the two products, Kimberly

chooses point M, with eight concerts and three overnight getaways as her utility-maximizing choice.
146 6 • Consumer Choices

FIGURE 6.3 How a Change in Income Affects Consumption Choices The utility-maximizing choice on the original
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