Draw a figure to illustrate the Application "Quitting Smoking." That is, show why as the price of cell phones drops, less tobacco is consumed?
(Draw a figure like panel a of Figure 4.2 with cell phones on the horizontal axis and tobacco on the vertical axis. However, unlike in Figure 4.2, the price-consumption curve should slope downward.)
Figure 4.2: 0Deriving Mimi's Demand Curve

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(a) Indifference Curves and Budget Constraints 12.0 e Price-consumption curve 5.2 4.3 2.8 L' (P, = $12) L° (P, = $4) = $6) Beer, Gallons per year 26.7 44.5 58.9 (b) Demand Curve 12.0 E, E2 6.0 E, 4.0 D', Demand for beer Beer, Gallons per year 26.7 44.5 58.9 .......... ........... Wine, Gallons peryear e P, $ per unit G