Sam's is interested in two goods, X and Y. His indirect utility function is

U* = M px-.2py-8.( same as U* = M /(px.2py0.8))

where

M is Sam's income, andpxand pydenote respectively the price of good X and the price of good Y.

Sam's market demand functions are X*=0.2M/pxand Y* = 0.8M/py.

FindSam's equivalent variation if the price of good X rises from 1 to 3.4 dollars assuming his income is M=236 and price of good Y is equal to 1.