An employee asks her boss whether she can transfer offices, so that she can work in a different part of the country. The boss responds positively and says that the employee can choose to work in Cleveland, Miami, or New York City. The boss then hands the employee a list, as shown in the table below, of the salaries that she would earn in the different cities and the average price levels in those same cities. Office location Cleveland Miami Salary ($) CPI New York City 80,000 120,000 150,000 100 155 210 a. From the standpoint of maximizing the employee's consumption possibilities, she should choose (Click to select) Instructions: Round your answer to the nearest whole number. ✓ b. The minimum salary in New York City the boss could offer the employee to make her indifferent between moving to Cleveland or New York City is $
An employee asks her boss whether she can transfer offices, so that she can work in a different part of the country. The boss responds positively and says that the employee can choose to work in Cleveland, Miami, or New York City. The boss then hands the employee a list, as shown in the table below, of the salaries that she would earn in the different cities and the average price levels in those same cities. Office location Cleveland Miami Salary ($) CPI New York City 80,000 120,000 150,000 100 155 210 a. From the standpoint of maximizing the employee's consumption possibilities, she should choose (Click to select) Instructions: Round your answer to the nearest whole number. ✓ b. The minimum salary in New York City the boss could offer the employee to make her indifferent between moving to Cleveland or New York City is $
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.2P
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Transcribed Image Text:An employee asks her boss whether she can transfer offices, so that she can work in a different part of the country. The boss responds
positively and says that the employee can choose to work in Cleveland, Miami, or New York City. The boss then hands the employee a
list, as shown in the table below, of the salaries that she would earn in the different cities and the average price levels in those same
cities.
Office location
Cleveland
Miami
Salary ($)
CPI
New York City
80,000
120,000
150,000
100
155
210
a. From the standpoint of maximizing the employee's consumption possibilities, she should choose (Click to select)
Instructions: Round your answer to the nearest whole number.
✓
b. The minimum salary in New York City the boss could offer the employee to make her indifferent between moving to Cleveland or
New York City is $
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