1.Consider a quasi-linear utility function, U(X, Y) = X^1/2 + Y. Let P_y = $1, I = 24, and suppose that P_x increases from $0.5 to $2.

a. Step-by step, find the Compensating Variation (CV) and the Equivalence Variation (EV).

b. Instead of integration, how can you find the change in the consumer surplus (measured by the area above the price and below the demand curve) associated with the price increase in this case? What is the value? Explain your answer.