Question 4. Suppose a Consumer has a utility function given by U(X,Y) = MIN(3X, Y). The price of good X is Px = $2 and the price of good Y is Py = $1. The consumer has $30 to spend (M = $30). Suppose the price of Good X increases to $3. Calculate the Equivalent Variation:
Question 4. Suppose a Consumer has a utility function given by U(X,Y) = MIN(3X, Y). The price of good X is Px = $2 and the price of good Y is Py = $1. The consumer has $30 to spend (M = $30). Suppose the price of Good X increases to $3. Calculate the Equivalent Variation:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I am working on practice problems for my midterm and I want to make sure I get them right.
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Practice Problems - Midt...
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Question 4. Suppose a Consumer has a utility function given by U(X,Y) = MIN(3X, Y). The
price of good X is Px = $2 and the price of good Y is Py = $1. The consumer has $30 to spend
(M = $30).
Suppose the price of Good X increases to $3. Calculate the Equivalent Variation:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0bfeb90e-22e6-4ede-a4eb-428bfbf3c4aa%2F94f700dd-a82d-4427-9f97-70fc28a2c65a%2Feyhob1w_processed.jpeg&w=3840&q=75)
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Practice Problems - Midt...
D
Question 4. Suppose a Consumer has a utility function given by U(X,Y) = MIN(3X, Y). The
price of good X is Px = $2 and the price of good Y is Py = $1. The consumer has $30 to spend
(M = $30).
Suppose the price of Good X increases to $3. Calculate the Equivalent Variation:
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