Describe his indifference curves

Reference no: EM131323827

Minnesota customers of Earthlink, Inc., a high-speed Internet service provider, who obtained broadband access from a cable modem paid no tax, but Earthlink customers who use telephone digital subscribers lines paid $3.10 a month in state and local taxes and other surcharges (Matt Richtel, "Cable or Phone? Difference Can Be Taxing," New York Times, April 5, 2004, C1, C6). Suppose that were it not for the tax, Earthlink would set its prices for the two services so that Sven would be indifferent between using cable or phone service. Describe his indifference curves. Given the tax, Earthlink raised its price for the phone service but not its cable service. Use a figure to show how Sven chooses between the two services.

Reference no: EM131323827

Questions Cloud

Identify the primary focus for each the essays : Identify the primary focus for each the essays. How do you know?- How does each writer organize their arguments in the essays?

What are the steps in analyzing an ethical dilemma : An ethical dilemma is a situation that is very difficult to resolve because no course of action will be a perfect solution. In such situations, critically analyzing and thinking about all applicable ethical principles is important. Even then, it c..

State which operating system you recommend for requirements : ITS1101: Based on the above analysis, state which operating system you recommend for the following requirements and your justification:

Find the expressing for the mean-square pressure : A piston at one end of a gas filled circular tube of area S oscillates with real-valued velocity: Find the expression for the real-valued pressure anywhere in the tube and Find the expressing for the mean-square pressure

Describe his indifference curves : Earthlink raised its price for the phone service but not its cable service. Use a figure to show how Sven chooses between the two services.

Write introduction and executive summary on general motors : Write Introduction and Executive Summary on General Motors.- Thorough summary of case study highlighting significant factors of application research and SWOT analysis.

Show the original and new budget constraint : Ralph usually buys one pizza and two colas from the local pizzeria. The pizzeria announces a special: All pizzas after the first one are half-price. Show the original and new budget constraint. What can you say about the bundle Ralph will choose w..

Describe the stringent ethical compliance : The field of research in psychology is paramount. In the section on competencies, it is expected that psychologists understand and know the research in their fields, with particular attention paid to evidenced-based interventions. It is through re..

How do her budget line and opportunity set change : Draw her budget line. If she receives $100 in food stamps and $200 in a housing subsidy (which she can spend only on housing), how do her budget line and opportunity set change?

User Account

All Pages