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Question 'I Catherine's preferences are representable by the utility function u = (41 - 10)2 (12 - 15): . 4mm: Save Answer where an and

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Question 'I Catherine's preferences are representable by the utility function u = (41 - 10)\"2 (12 - 15)\": . 4mm: Save Answer where an and q; denote her consumption ofgoods1 and 2. Catherine is endowed with 15 units of good 1 and 25 units of good 2. [Answers to this question are rounded to two decimal places] Suppose, at rst, that Catherine faces market prices p1 = 2 and p2 = 5. What is Catherine's compensating variation if the price of good 1 increases to 131' = 4? 0 co = 1.08 O at: = 'l.08 0 ct: = '10.00 0 ct: = 10.00 0 None of the above

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