Salary ($) 75, 000 110, 000 170, 000 Office location CPI Moncton 100 Vancouver Toronto 160 205 a. From a standpoint of maximizing the employee's consumption possibilities, she should choose (Click to select) ♥ Instructions: Round your answer to the nearest whole number. b. The minimum salary in Toronto the boss could offer the employee to make her indifferent between moving to Moncton and to Toronto is $

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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An employee asks her boss whether she can transfer offices so that she can work in a different part of the country. The
boss responds positively and says that the employee can choose to work in Moncton, Vancouver, or Toronto. The boss then
hands the employee a list, as shown in the table below, of the salaries that she would earn in the different cities and the
average price levels in those cities.
Office location
Salary ($)
CPI
Moncton
75, 000
100
Vancouver
110, 000
160
Toronto
170, 000
205
a. From a standpoint of maximizing the employee's consumption possibilities, she should choose (Click to select)
Instructions: Round your answer to the nearest whole number.
b. The minimum salary in Toronto the boss could offer the employee to make her indifferent between moving to Moncton
and to Toronto is $
Transcribed Image Text:An employee asks her boss whether she can transfer offices so that she can work in a different part of the country. The boss responds positively and says that the employee can choose to work in Moncton, Vancouver, or Toronto. The boss then hands the employee a list, as shown in the table below, of the salaries that she would earn in the different cities and the average price levels in those cities. Office location Salary ($) CPI Moncton 75, 000 100 Vancouver 110, 000 160 Toronto 170, 000 205 a. From a standpoint of maximizing the employee's consumption possibilities, she should choose (Click to select) Instructions: Round your answer to the nearest whole number. b. The minimum salary in Toronto the boss could offer the employee to make her indifferent between moving to Moncton and to Toronto is $
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