Question

John has utility given below and an income of $12. Initially good 1 cost $1 but...

John has utility given below and an income of $12. Initially good 1 cost $1 but now cost $2 due to a price change. Good 2 cost $1. Good 3 cost $3.

u(x1, x2, x3)= min(x1, x2)+ x3

a) What is John's CV because of price change

b) What is John's EV because of price change

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