Question
A has a Utility function u (x1, x2) = 5x1^.4 x2^.6. If p1 falls from 10 to 8 which is larger. A's compensating variation from
A has a Utility function u (x1, x2) = 5x1^.4 x2^.6. If p1 falls from 10 to 8 which is larger. A's compensating variation from the price change , her equivalent variation from the price change, neither?
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Econometric Analysis Of Cross Section And Panel Data
Authors: Jeffrey M Wooldridge, J M Wooldridge
2nd Edition
0262232588, 9780262232586
