The figure below shows a consumer maximizing utility at two different prices (the left panel) d the consumer's demand for good X at the same two prices of good X (the right panel). The ice of good Y is $4.50. When the price of X increases from point S to point R along the mand curve, the substitution effect of the price increase is and the income effect is

Would you expect total utility to rise or fall with additional consumption of a good? Why?

Who determines how much utility an individual will receive from consuming a good?

Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a round—trip cost of 2 in gasoline money. He has a total of 10 per week to spend on staying in touch. To make his preferred 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 011 Jeremys consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.