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Economics - Financial Markets 16 Online
OpenStudy (anonymous):

A company considers a package to help employees with the running costs of their cars.It considers two options : A.to offer fixed amount of money towards the use of the car in addition to a cost-free usage for the first X0 miles; B.to participate in the actual cost of running the car(i.e. pay a certain amount,a0,per mile used) a)let X represents mileage of car usage and Y all other goods.Draw each of the options while analyzing the individual's response to the proposed change(i.e.discuss the income and substitution effects);

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