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12. Chapter 3: There are three individuals (Alfa, Kappa, and Omega) who plan to buy a car. Each one has different preferences between styling and
12. Chapter 3: There are three individuals (Alfa, Kappa, and Omega) who plan to buy a car. Each one has different preferences between styling and gasoline consumption, and the same income, i.e. (25000. There are plenty of different cars one can buy with E25000. Each unit of styling costs (5000 while each unit of gasoline performance costs E2500. Explain and show in a clear graph which styling and gasoline combination each one will buy. (Place styling on the vertical axis). (1 point) Alfa values 1 unit of styling equally with 1 unit of gasoline (1 point) Kappa values 1 unit of styling equally with 2 units of gasoline (2 points) Omega (who has studied Microeconomics) expresses his preferences in terms of Marginal Rate of Substitution which is: MRS = 1Style/4Gasoline
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