i would like to know how the graph might shift in both situation.
also comparing Qa and Qc
You leave the house on your way to work. Your route involves a 10 minute walk to the streetcar stop, followed by another 10 minute streetcar ride to the subway, and then a 20 minute subway ride to work. You get to the subway and just as you are about to go down into the subway to catch your train you realize you've left your phone at home (I know, for many of us this is unrealistic, still, try to imagine 63. You are in the midst of deciding if it is worthwhile to return home and risk being late for work again. There is a chance you could be penalized, lose privileges or even be fired if you are late. Suddenly it occurs to you that in addition to your phone, you also forgot a somewhat important work document at home. Use the graph below to represent how your decision-making is affected by the particulars described above. Mark the vertical axis. The curves that are drawn in below reflect your decision making before the document situation is taken into account. Mark the curves. Point A reflects your position prior to realizing you forgot the document. Use our decision-making model to derive point B which should illustrate how the forgotten document factors into your decision-making. MC A l MB C1\" Likelihood of returning home Continuing forward from point B, they announce on the subway intercom that line 2 is down and all passengers are being diverted onto shuttle buses. You know this is your manager's line and this means your manager will almost definitely be late as well, even more so than you would be, decreasing your likelihood ofgetting caught being late! Show how this new development affects your decision to return home for your phone and the document by continuing the analysis starting from your previously derived point B. Mark the curves below. Mark the vertical axis again. Derive and show your new decision point C. MC B l | MB QB Likelihood of returning home Compare C1" and (1'. Given the information described above, are you more or less likely to return home for your phone, or is it ambiguous? Discuss BRIEFLY. How has the 'price' variable been affected? Provide some interpretation of what the price variable might be measuring in this decision-making example. {Please be succinct. More is not better. Thoughtful is better.}