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Kayla's utility depends on her consumption of good q, and good q2: U=q, 542 0.4 Her uncompensated demands for good q, and good q, are

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Kayla's utility depends on her consumption of good q, and good q2: U=q, 542 0.4 Her uncompensated demands for good q, and good q, are 0.6Y and 42 = P2 and her compensated demands for good q, and good q, are P2 0.4 0.6 91 =1,1760 Pi and q2 = 0.7840 P2 Therefore, her expenditure function (E) is E =1.96U(p, ") (p204 ) Let the price of good q, initially be $15 and the price of good q, be $10. Kayla has income of $900. If the price of good q, increases from $15 to $20, what is Kayla's compensating variation? Kayla's compensating variation (CV) is CV= (Enter a numeric response using a real number rounded to two decarnal places ) If the price of good q, increases from $15 to $20, what is Kayla's equivalent vanation? Kayla's equivalent variation (EV) is EV= |(Enter a numeric response using a real number rounded to two decimal places.)

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