Suppose you have $400,000 saved up and purchase a medium-sized house for $200,000.Consider the following 2 scenarios:
i.The very next day,the prices of all houses,including the one you have just bought,double.
ii.The very next day,the prices of all houses,including the one you bought,fall by half.
Show that both scenarios increase your utility.

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The Answer of Suppose you have $400,000 saved up and purchase a medium-sized house for $200,000.Consider the following 2 scenarios:
i.The very next day,the prices of all houses,including the one you have just bought,double.
ii.The very next day,the prices of all houses,including the one you bought,fall by half.
Show that both scenarios increase your utility.

Suppose You Have $400,000 Saved Up and Purchase a Medium-Sized