Describe customers indifference curves


Problem

Minnesota customers of Earthlink, Inc., a high-speed Internet service provider, who obtained broadband access from a cable modem paid no tax, but Earthlink customers who use telephone digital subscribers lines paid $3.10 a month in state and local taxes and other surcharges (Matt Richtel, "Cable or Phone? Difference Can Be Taxing," New York Times, April 5, 2004, C1, C6). Suppose that were it not for the tax, Earthlink would set its prices for the two services so that Sven would be indifferent between using cable or phone service. Describe his indifference curves. Given the tax, Earthlink raised its price for the phone service but not its cable service. Use a figure to show how Sven chooses between the two services.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Describe customers indifference curves
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