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

question 3

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 $16 and was paying a price of $8 for earrings when the price of earrings went up to $10, then the equivalent variation of the price change was

• A)$3.56.
• B)$1.45.
• C)$2.91.
• D)$7.11.
• E)$3.23.

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Definitions:

Unethical Behaviour

Actions that deviate from accepted moral norms, often harming others or the organization.

Piece-Rate

A pay system in which individual workers are paid a certain sum of money for each unit of production completed.

Lump Sum Bonus

A one-time payment given to an employee as a reward for performance or for completion of a project.

Productivity Restriction

Limitations or constraints that reduce the efficiency or output of work processes, often resulting in decreased organizational performance.