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Greg has the following utility function:u=x 1 0.50 x 2 0.50 . He has an income of $92.00, and he faces these prices:(p 1 ,
Greg has the following utility function:u=x10.50x20.50. He has an income of $92.00, and he faces these prices:(p1, p2)=(5.00, 4.00). Suppose that the price ofx1increases by $1.00. Calculate the equivalent variation for this price change.
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