4) A convenient way to calculate the compensating variation (CV) is to use the expenditure function. Suppose an individual has the utility function: U(q1.92) = qq5~ 1. Solve for quantities (q,, q,) as a function of income and expenditures (income). 41 ii. Plug values from part (i) back into utility function, solving for U as a function of expenditures (income) and prices. iii. Now we want to know necessary expenditures (income level) to maintain utility level U when prices change. To do this, we solve for expenditures as a function of prices and U. a) What is the expenditure function of individual facing prices p,, p,, and expenditures, E (equivalent to income y). b) How can we use the expenditure function to calculate the compensating variation? Why is compensating variation useful