Answer to Question #331737 in Microeconomics for Jeff

Question

If your preferences is represented by the utility function U=min[2C, F] where F is her food consumption and C her clothing consumption, and if the price of food (Pf) were 1, and her income was 100, what would be the compensating variation (CV) to a fall in the price of clothing (Pc) from 2 to 1?

Answer 1

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