Question: Stakeholders are interested in how consumers make choice among options. Considering the price of gas consumers may purchase to operate a car in any month any any choice availible assuming the net income is open from the consumer to make the purchase. Assume gas prices for the car rose 100% during the summer the decision was to be made to purchase the car. Can you help explain the effects in terms of income effect or the subsitution effect or both effects? Can you help me with graphs per each noted item below?
1. Consumer drove less and purchased less gas
2. Consumer ate out less often
3. Consumer spent less to maintain the car
4. Consumer took bus or public transp. more often
5. Consumer purchased a bike
6. Consumer decied not to take a holiday away from home
7. Consumer purchased less clothes and made due around the house