choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from

phone minutes. Using the values in Table 6.6, figure out the points on Jeremy’s consumption choice

budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.

Round Trips Total Utility Phone Minutes Total Utility

0

80

150

210

260

300

330

200

180

160

140

0

1

2

3

4

5

6

7

8

9

10

TABLE 6.6

0

20

40

60

80

100

120

140

160

180

200

0

200

380

540

680

800

900

980

1040

1080

1100

2. Take Jeremy’s total utility information in Exercise 6.1, and use the marginal utility approach to confirm

the choice of phone minutes and round trips that maximize Jeremy’s utility.

3. Explain all the reasons why a decrease in a product's price would lead to an increase in purchases.

4. As a college student you work at a part-time job, but your parents also send you a monthly “allowance.”
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