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

question 21

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 $12 and was paying a price of $4 for a pair of earrings, then if the price of earrings went up to $6, the equivalent variation of the price change would be

• A)$4.80.
• B)$3.43.
• C)$1.71.
• D)$9.60.
• E)$4.11.

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