a. Provide a fully labelled Indifference Curve diagram that applies Becker's model of Time and Money Prices to determine Andrew's optimal consumption as bundle "a". Put Good X on the horizontal axis. b. The CICA increased their price for accounting videos to $60. To make matters worse their server has been running slow. Andrew now spends 2 hours to download and watch an accounting video. Because he is a very good customer the CICA has offered to compensate him. He will be given a few free downloads every day. Show on your diagram from Part a. the minimum number of free videos they would have to offer him as Bundle "b". His Hicksian CV =_

a. Provide a fully labelled Indifference Curve diagram that applies Becker's model of Time and Money Prices to determine Andrew's optimal consumption as bundle "a". Put Good X on the horizontal axis. b. The CICA increased their price for accounting videos to $60. To make matters worse their server has been running slow. Andrew now spends 2 hours to download and watch an accounting video. Because he is a very good customer the CICA has offered to compensate him. He will be given a few free downloads every day. Show on your diagram from Part a. the minimum number of free videos they would have to offer him as Bundle "b". His Hicksian CV =_

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 12SQ

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