Ellsworth’s utility function is u (x, y) = min{x, y}. ellsworth has $150 and the price of x and the price of y are both $1. ellsworth’s boss is thinking of sending him to another town where the price of x is $1 and the price of y is $2. the boss offers no raise in pay. ellsworth, who understands compensating and equivalent variation perfectly, complains bitterly. he says that although he doesn’t mind moving for its own sake and the new town is just as pleasant as the old, having to move is as bad as a cut in pay of $a. he also says he wouldn’t mind moving if when he moved he got a raise of $b. what are a and b?

answer; break-even analysis;

answer/// the grapefruit that guarantees you will loss five pounds a week;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.