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

question 7

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 $19 and was paying a price of $5 for earrings when the price of earrings went up to $11, then the equivalent variation of the price change was

• A)$19.
• B)$38.
• C)$9.50.
• D)$4.75.
• E)$14.25.

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Definitions:

Norms

Established standards or rules of behavior that are expected to be followed within a group or society.

Task Activities

Specific actions or operations that are undertaken by individuals or teams in order to complete a task or achieve an objective.

Maintenance Activities

Actions undertaken to keep machinery, equipment, or systems operating smoothly and prevent breakdowns.

Manager

An individual responsible for controlling or administering an organization or group of staff, focusing on planning, executing strategies, and overseeing operations.