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Ricardo's utility depends on his consumption of good q, and good q2, where the price of good q, is initially $40 and the price of
Ricardo's utility depends on his consumption of good q, and good q2, where the price of good q, is initially $40 and the price of good q2 is $30. At the original prices, his compensated demand for good q1 is 0.4 P2 91 = 5.049 P1 The price of good q1 increases from $40 to $60. At the new price, Ricardo's compensated demand for good q1 is P2 0.4 91 = 3.957 p1 What is Ricardo's compensating variation? Ricardo's compensating variation (CV) is CV = . (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 =
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