Question: Darrell has a monthly income of $60. He spends this money making telephone calls to his home (measured in minutes of calls) (c) and on other goods (y). His mobile phone company offers him two plans:

Plan A: Pay no monthly fee and make calls for $0.50 per minute

Plan B: Pay a $20 monthly fee and makes calls for $0.20 per minute

Graph Darrell’s budget constraint under each of the two plans. If Plan A is better for him, what is the set of baskets he may purchase if his behavior consistent with utility maximization (that is, picking the best choices given standard preferences). What baskets might he purchase if plan B is better for him?