Using indifference curve analysis

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Mary plans to attend college and to pay her own way. Mary's parents of course, want to help her out financially and are trying to decide how best to do it. Should they pay for half of Mary's yearly educational expenses (whatever those expenses may be) or should they simply deposit that amount of money into Mary's checking account at the start of each academic year and be done with it? They want to do whichever will please Mary the most. Using indifference curve analysis, help Mary's parents decide what to do. (Hint: If Mary's parents pay half of her yearly educational expenses, what does this effectively do to the price Mary pays for attending college?)

Reference no: EM13896995

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