Order the answer to: Jim’s utility function is U(q1, q2) = min(q1, q2). The

Academic Help business-economics Order the answer to: Jim’s utility function is U(q1, q2) = min(q1, q2). The

business-economics

Order the answer to: Jim’s utility function is U(q1, q2) = min(q1, q2). The

Question Jim’s utility function is U(q1, q2) = min(q1, q2). The price of each good is $1, and his monthly income is $4,000. His firm wants him to relocate to another city where the price of q2 is $2, but the price of q1 and his income remain constant. Obviously, Jim would be worse off due to the move. What would be his equivalent variation or compensating variation?
Subject business-economics
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