In 2005, a typical U.S. owner of a home theater (a television and a DVD player) bought 12 music CDs (q₁) per year and 6 Top-20 movie DVDs (q2) per year. The average price of a CD was about p₁ = $15, the average price of a DVD was roughly p₂ = $20, and the typical consumer spent $300 on these entertainment goods.17 Based on these data, we estimate a typical consumer's Cobb-Douglas utility function is U = q₁^0.6q₂^0.4. Redraw Figure 4.2 based on this utility function. Explain the shape of the price-consumption curve.

Figure 4.2: Deriving Mimi's Demand Curve