An executive who makes $90,000 a year in Dallas

| November 24, 2016

An executive who makes $90,000 a year in Dallas has received an offer to do similar work for a company in Detroit. The new company has agreed to compensate her for the differences in consumer price index, between Dallas and Detroit. Assume that CPI in Dallas is 96 and the Detroit CPI is 108. How much should the company in Detroit pay? Also, use the budget line to explain your answer.

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