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I s 2. Suppose a: * sfzf.1nitisliy we have in = pg '= 1. but then m rises to 2. The consumer's income is $40
I s 2. Suppose a: * sfzf.1nitisliy we have in = pg '= 1. but then m rises to 2. The consumer's income is $40 it} Using the methtid in question I solve for the demands for goods I and 2. Solve for the optimal points both pro and post price change and show these point on a clear complete graph. h] Dene in words what the UV associated with this price change represents for this consumer. Using the method covered in class. solve for the CV associated with this price change for this consumer. Show this on a graph. i-J Deni- in words what the EV associated with this price change represents for this consular _ Solve for the EV associated with this price change for this consumer. Show this on e graph. (\"It {I} Which measure GI" welfare change is larger? Why? {40 pts]
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