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Please see the picture for question. Thanks! 6. We are interested in how a consumer reacts in her consumption of two goods, rides in her

Please see the picture for question. Thanks!

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6. We are interested in how a consumer reacts in her consumption of two goods, "rides in her own car," C, and "rides in public transportation," T. The rides in the own car become more expensive because the price p0 rises because the cost of gasoline, while the price of public transportation pT remains con- stant. Discuss the following situations, supposing that both goods are normal. a. T and C are imperfect substitutes Represent the likely equilibria before and after the rise of pa; b. T and C are perfect complements (the consumers uses the car to get the train). Represent the likely equilibria before and after the rise of po and comment the difference that you see with the answer in a; c. T and C are perfect substitutes but that the consumer has a marked preference for C (absolute value of MRS is greater than absolute value of M RT even after the change in prices); d. A city consists mainly of consumers with T and C imperfect substitutes and the income effect is small for public transportation. What should the Town Hall expect to happen to the aggregated demand for public transportation after a rise in gasoline? Explain your

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