Bernice's utility function is U(x, y)= min{x, y}.The price of x used to be 3 but rose to 4.The price of y remained at 1.Her income is 12.She would need an income of $15 to be able to afford a bundle as good as her old one at the new prices.

Utility Function

A representation in economics that measures preferences over a set of goods and services, often in order to derive an individual's optimal choice under constraints.

Income Bundle

A combination of goods and services that a consumer can purchase with their available income.

New Prices

The latest prices for goods or services, updated from previous values due to factors such as inflation, demand, or production costs.