Business, 09.10.2019 00:30, hrcatena

Suppose that without a seat belt, drivers who travel at 0 mph have a 100% chance of staying alive, while drivers who travel at 100 mph have 0% chance of staying alive. suppose that with a seat belt, drivers who travel at 0 mph have a 100% chance of staying alive, drivers who travel at 100 mph have a 50% chance of staying alive, and drivers who travel at 200 mph have a 0% chance of staying alive. suppose a driver prefers more chances of staying alive to less, driving faster than slower. draw and indifference curve diagram relating safety (measured by chance of staying alive) on the horizontal axis and speed (measured in m. p.h.) on the vertical. draw the budget constraints of a driver with a seat belt and a driver without a seat belt. (you may assume these constraints are straight lines.)

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Suppose that without a seat belt, drivers who travel at 0 mph have a 100% chance of staying alive, w...