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Justin’s utility function is U(x, y) = min{x, y}. Justin has $150, and the price of x and the price of y are both $1. Because of problems in the local bureau, Justin’s boss is thinking of sending him to another town where the price of x is $1 and the price of y is $2 and the boss offers no raise in pay when moving. However, Justin does not want to move. The boss tells him that he would have to decrease Justin's wage if he didn't move. What is the maximal decrease in wage under which Justin will still not be willing to move? (Justin will not move if he is indifferent between moving and not moving.)
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