Question: Using indifference curve analysis, explain and show graphically the effects of higher gasoline prices on:

1. The quantity of gasoline purchased.
2. The quantity of other goods and services purchased. Will the direction of change in these purchases always be in the same direction? Why or why not?
3. The total utility of optimal choice purchases before and after the increase in gasoline prices.

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Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document