Question: 6.3 Janes utility function is U(q1, q2) = q1 + q2. The price of each good is $1, and her monthly income is $4,000. Her

6.3 Jane’s utility function is U(q1, q2) = q1 + q2.

The price of each good is $1, and her monthly income is $4,000. Her firm wants her to relocate to another city where the price of q2 is $2, but the price of q1 and her income remain constant. What would be her equivalent variation or compensating variation?

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