Question: 2.8 Kwabenas utility function is U(q1, q2) = min (q1, q2). The price of each good is $1, and his monthly income is $4,000. His

2.8 Kwabena’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 $3, but the price of q1 and his income remain constant. Obviously, he would be worse off due to the move. What would be his equivalent variation and compensating variation? M

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