Question: Below is a consumer choice model featuring two goods: Gasoline & Electricity as used in automobile travel. a. Suppose in an attempt to ration the

Below is a consumer choice model featuring two goods: Gasoline & Electricity as used in automobile travel.

a. Suppose in an attempt to ration the use of the electrical grid, the government of Colorado decided to set a maximum consumption limit of 100 kW hours of electricity consumption per driver. Use the model to understand what effect this law would have on consumption and utility.

b. Now suppose that the government were to set the limit on electricity consumption at 50 kW hours. Again, diagram what effect this would have on consumption and utility.

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