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

question 26

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 $15 and was paying a price of $8 for a pair of earrings, then if the price of earrings went up to $13, the equivalent variation of the price change would be

• A)$5.36.
• B)$8.33.
• C)$16.67.
• D)$2.68.
• E)$6.85.

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