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PROBLEM #4 [5 points]: Suppose a consumer has a utility function defined by U = X1/2y1/2 (MRS = Y/X) and she has an income of

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PROBLEM #4 [5 points]: Suppose a consumer has a utility function defined by U = X1/2y1/2 (MRS = Y/X) and she has an income of $312. Suppose this individual faces the following prices, Px = 13 and Py = 12. If the price of good Y goes up to P'y = 13, while everything else remains the same, find the value of this consumer's equivalent variation (EV)

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