1. 2.7 Marcia spends her money on coffee and sugar, which she views as perfect complements. She adds one tablespoon of sugar to each cup of coffee. A cup of coffee costs $1, a tablespoon of sugar cost

$0.20, and she spends $16.80 on coffee every week.

Use graphs to show her compensating variation and equivalent variation if the price of sugar doubles.

Discuss the relative sizes of the change in her con sumer surplus, compensating variation, and equiva lent variation.