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Bobby is off at college. He regularly comments that despite reducing his driving his weekly expense on gasoline is still $20. (His semester is 15
- Bobby is off at college. He regularly comments that despite reducing his driving his weekly expense on gasoline is still $20. (His semester is 15 weeks.) Assume that his parents wish to give him a gift card for Christmas, use indifference analysis to clearly explain why Bobby would likely be happier with a VISA gift card for $300 versus a Shell Gas card of equal value? If one wants to consider the TOTAL impact on utility of both Bobby and his parents, why might the Shell card result in higher total utility than the VISA card? (Do not do indifference for the last part. Just state your reasoning.)
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