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.