Question
Marvin has aCobb-Douglas utilityfunction, U=q1^0.5xq2^0.5, his income is Y=$300, and initially he faces prices of p1=$2 and p2=$1. If p1 increases from $2 to $4,
Marvin has aCobb-Douglas utilityfunction,
U=q1^0.5xq2^0.5,
his income is Y=$300, and initially he faces prices of p1=$2 and p2=$1. If p1 increases from $2 to $4, what are his compensating variation(CV), change in consumer surplus (CS), and equivalent variation(EV)?
Marvin's compensating variation(CV) is $. (Enter your response rounded to two decimal places and include a minus sign ifnecessary.)
Marvin's change in consumer surplus (CS) is $. (Enter your response rounded to two decimal places and include a minus sign ifnecessary.)
Marvin's equivalent variation(EV) is $. (Enter your response rounded to two decimal places and include a minus sign ifnecessary.)
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