(Figure: Income and Substitution Effects forCell Phones and Uber Rides) Use Figure:Income and Substitution Effects for CellPhones and Uber Rides. Rafael isconsuming his optimal consumption bundleat point A when the price of Uber rides falls.The dashed line tangent to /₁ shows ahypothetical budget line reflecting:CellphoneL3L₂4₁O a.C.327O d.0AEK1 K2BL1CK₂1₁1₂BL 2Uber ridesO b. the new price of Uber rides in termsof cell phones and a change inincome to allow Rafael to reach anindifference curve higher than /₁the original income, the originalprice of cell phones, and the newprice of Uber rides.the income and substitutioneffects.the new price of Uber rides in termsof cell phones and a change inincome to keep Rafael on theoriginal indifference curve.

The income effect is the effect of income changes on the demand, the effect income has on the demand…

(Figure: Income and Substitution Effects for Cell Phones and Uber Rides) Use Figure: Income and Substitution Effects for Cell Phones and Uber Rides. Rafael is consuming his optimal consumption bundle at point A when the price of Uber rides falls. The dashed line tangent to l₁ shows a hypothetical budget line reflecting: 0 Cell phone L3 L₂ L₁ a. 147 C. O b. b. 0 O d. E K1 Kz BL₁ C K3 1₁ 1₂ BL₂ Uber rides the original income, the original price of cell phones, and the new price of Uber rides. the new price of Uber rides in terms of cell phones and a change in income to allow Rafael to reach an indifference curve higher than ₁ the income and substitution effects. the new price of Uber rides in terms of cell phones and a change in income to keep Rafael on the original indifference curve.