Question: Bernice has utility function U(x, y) = min {x, y}. The price of x used to be 4, but got cut to 3. The price

Bernice has utility function U(x, y) = min {x, y}. The price of x used to be 4, but got cut to 3. The price of y remained constant at 1. Her income is 12. Calculate the equivalent and compensating variations.

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