Question
Santiago has quasilinear utility given by the equation u=ln(x)+y. He has $10.00in income. The price ofx is $2.00, while the price ofy is $1.00. If
Santiago has quasilinear utility given by the equation u=ln(x)+y. He has $10.00in income. The price ofxis $2.00, while the price ofyis $1.00. If the price ofxincreases to $6.00, calculate the change in Santiago's consumer's surplus. Give your answer to two decimal places.
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Survey of Economics
Authors: Irvin B. Tucker
8th edition
1111989664, 978-1133713357, 1133713351, 978-1111989668
