Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he

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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 on Jeremy’s consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.

Table 6.6

0 1 2 3 4 5 6 7 8 9 10 Round Trips 0 80 150 210 260 300 330 200 180 160 140 Total Utility 0 20 40 60 80 100

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