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7 (Chapter 14). Bernice has the utility function u(x, y) = min{x, y}, where x is the number of pairs of

earrings she buys per week and y is dollars to spend on other things. If the prices she faces are (px, py)=(6,1) and her income is $18 per week, then if the price of earrings rose to $10, the compensating variation of that change (measured in dollars) is


a) $20.57. b) $6.55. c) $10.29. d) $21.57. e) $19.57.

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Hi, The answer is C... View the full answer

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