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CASE STUDY (DATA ANALYSIS): You are part of a policy team in the state government investigating how to reduce driving fatalities. A large body of research documents some concerning facts about teenage drivers. Between 15% and 30% of teens have an accident in their first year of driving. Your team is tasked with evaluating an intervention that restricts driving privileges for teenage drivers. In 2007 New South Wales introduced a law that banned drivers in their first year of a provisional licence from carrying two or more passengers under the age of 21 between 11pm and 5am.
QUESTION: A third team member suggests calculating changes in the restricted period (11pm- 5am) then comparing those to the changes in accidents during the daytime (8am- 8pm). Is this a good strategy? Why or why not? [max 200 words]
Draw indifference curves that describe consumer's preferences over:
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