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.

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Bernice's utility function is U(x, y) = min{x, y}, meaning she consumes equal amounts of x and y. Initially, she could buy 4 units of each (3x4 + 1x4 = 12). At new prices, to buy 4 units of each, she needs 4x4 + 1x4 = 20, but with $15, she can buy 3 units of x and 3 units of y, which is as good as her old bundle.

Bernice's Utility Function Is U(x, Y) = Min{x, Y}