Question: 9. Income and substitution effects Study Tools lons ccess Tips ccess Tips back Antonio and Caroline are two friends living in Chicago who love

9. Income and substitution effects Study Tools lons ccess Tips ccess Tips back Antonio and Caroline are two friends living in Chicago who love to try different restaurants in their city, but have specific preferences regarding venues for certain meals. In particular, they like to eat out at upscale gastropubs for dinner and diners for brunch. On the following diagram, the purple curves I, and I represent two of their indifference curves for upscale dinners and diner brunches. Assume that the friends have a monthly budget of $1,000 available to spend on going out to eat, and further, that the price of a diner brunch is always $10. Each labeled point represents tangency between a budget constraint and the corresponding indifference curve. DINER BRUNCHES 42

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