Question

alex doesnít care about where he lives, but he does care about what he
eats. Tim spends all his money on restaurant meals at either American (xA) or
French restaurants (xF ). His Örm o§ers to transfer him from its Houston o¢ ce
to its Paris o¢ ce, where he will face di§erent prices. The Örm will pay him a
salary in euros such that he can buy the same bundle of goods in Paris that he
is currently buying in Houston.

Answer 1

Answer:

Its so simple....

Explanation:

Alex doesn't care about where he lives, but he does care about what he eats. Alex spends all his money on restaurant meals at either American (x_a) or French restaurants (x_f). His firm offers to transfer him from its Austin office to its Paris office, where he will face different prices. The firm will pay him a salary in euros such that he can buy the same bundle of goods in Paris that he is currently buying in Austin.