Suppose Evie only sees movies that have been made from books and she has or will read the book. She gets no additionalpleasure from reading an additional book unless she will see the film, and gets no pleasure from watching an additional movie unless she reads the book.

Would Evie rather:

		Watch 3 movies and read 3 books?
		Watch 6 movies and read 2 books?

Would she rather:

		Watch 5 movies and read 5 books?
		Watch 9 movies and read 10 books?

Suppose books and movies cost $13 each and Evie's entertainment budget is $234 a month. Which bundle maximizes Evie's utility?

Movies:

Books:

If books increase in cost to $26 what bundle maximizes utility?

Movies:

Books:

Calculate the substitution effect as a result of this change.

Calculate the income effect as a result of this change.