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2. Helen is faced with the choice of either taking a train or an airplane to visit her mother in Seattle. Assume that Helen's utility
2. Helen is faced with the choice of either taking a train or an airplane to visit her mother in Seattle. Assume that Helen's utility function is UfW, where T represents the trip by train, A represents the trip by air, 2: is all other consumption and 4) reects Helen's consumption preferences. a. Assuming that the choice of mode for the Seattle trip is a discrete good, what are the possible values that T and A can take? Briey comment on whether it is possible for Helen to simultaneously consume Tand A can take? Briey comment on whether it is possible for Helen to simultaneously consume Tand A. In this scenario, Helen's utility function is represented as QT, A, x; (p), where T stands for a trip by train, A stands for a trip by air, x represents all other consumption, and q: reects Helen's consumption preferences. b. What is Helen's budget constraint if she takes the train to Seattle? 'What is her budget constraint if she goes to Seattle by air? c. Given that she makes the trip by air, identify the determinants of Helen's conditional indirect utility function. If Helen made the trip by train, would her conditional indirect utility function depend on the same determinants? d. Suppose that Helen decides to take the train to Seattle. Assuming that Helen is a utility- maximizing consumer, what can you conclude regarding the relationship between the conditional indirect utility of travelling by train and the conditional indirect utility of travelling by air? 2. Helen is faced with the choice of either taking a train or an airplane to visit her mother in Seattle. Assume that Helen's utility function is UfW, where T represents the trip by train, A represents the trip by air, 2: is all other consumption and 4) reects Helen's consumption preferences. a. Assuming that the choice of mode for the Seattle trip is a discrete good, what are the possible values that T and A can take? Briey comment on whether it is possible for Helen to simultaneously consume Tand A can take? Briey comment on whether it is possible for Helen to simultaneously consume Tand A. In this scenario, Helen's utility function is represented as QT, A, x; (p), where T stands for a trip by train, A stands for a trip by air, x represents all other consumption, and q: reects Helen's consumption preferences. b. What is Helen's budget constraint if she takes the train to Seattle? 'What is her budget constraint if she goes to Seattle by air? c. Given that she makes the trip by air, identify the determinants of Helen's conditional indirect utility function. If Helen made the trip by train, would her conditional indirect utility function depend on the same determinants? d. Suppose that Helen decides to take the train to Seattle. Assuming that Helen is a utility- maximizing consumer, what can you conclude regarding the relationship between the conditional indirect utility of travelling by train and the conditional indirect utility of travelling by air
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