If Bernice (Whose Utility Function Is Min{x, Y}, Where X

question 30

Multiple Choice

If Bernice (whose utility function is min{x, y}, where x is her consumption of earrings and y is money left for other stuff) had an income of $13 and was paying a price of $2 for earrings when the price of earrings went up to $3, then the equivalent variation of the price change was

• A) $3.25.
• B) $4.33.
• C) $8.67.
• D) $1.63.
• E) $3.79.

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A cognitive phase in the decision-making or problem-solving process that involves mental activities such as thinking, understanding, or planning.

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