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Suppose U = XY, M = 100, and Py= 1. The price of X rises from $0.25 to $1. Calculate Laspayers and Paasche measures of

Suppose U = XY, M = 100, and Py= 1. The price of X rises from $0.25 to $1. Calculate Laspayers and Paasche measures of welfare change, CV, and EV and check that they have the correct relative sizes. (20 marks)

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