Ricardo's utility depends on his consumption of good q , and good q2, where the price of good q1 is initially $40 and the price of good q2 is $30. At the original prices, his compensated demand for good q , is 0.4 91 = 30.29 P2 PI The price of good q , increases from $40 to $60. At the new price, Ricardo's compensated demand for good q , is 0.4 41 =23.75 What is Ricardo's compensating variation? Ricardo's compensating variation (CV) is OV = . (Enter a numeric response using a real number rounded to two decimal places.) What is Ricardo's equivalent variation? Ricardo's equivalent variation (EV) is EV =Delay - Definition Compensating variation is the amount of money that would fully compensate an individual for a price increase. Definition Equivalent variation is the amount of income that, if taken from a consumer, would lower utility by the same amount as a price increase. Answers - 495.797 - 388.752