Suppose that an individual has a utility function of the form: < U = E0.25 +0.75,...

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Suppose that an individual has a utility function of the form: < U = E0.25 +0.75, where E is some index of environmental quality and Y-income. Given initial values of E0-1 and Yo=100, calculate CS and ES for an increase in E to level 2 (that is, E1-2) and a decrease of E to 0.5 (that is, E2=0.5). That is, calculate two sets of CS and ES. Hint: Start by drawing the graph and graphically identify the ES and CS under each scenario. Refer to the table in the slides for the interpretation of the metrics. < < Can we use a Marshallian demand curve to approximate the ES & CS in this case? Suppose that an individual has a utility function of the form: < U = E0.25 +0.75, where E is some index of environmental quality and Y-income. Given initial values of E0-1 and Yo=100, calculate CS and ES for an increase in E to level 2 (that is, E1-2) and a decrease of E to 0.5 (that is, E2=0.5). That is, calculate two sets of CS and ES. Hint: Start by drawing the graph and graphically identify the ES and CS under each scenario. Refer to the table in the slides for the interpretation of the metrics. < < Can we use a Marshallian demand curve to approximate the ES & CS in this case?