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

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?

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