Joanna lives in Chicago and very much enjoys traveling by air to see her mother in Italy. On the graph below, x denotes her number of round trips to Italy each year. The composite good y measures her annual consumption of other goods; the price of the composite good is py, which is constant in this problem.

Several indifference curves from her preference map are drawn below, with levels of utility U1

Make a copy of the graph below, and use it to determine the income and substitution effects on the number of round trips Gina makes as the price of a round trip decreases from $3000 to $1000. Clearly label these effects on the graph.

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