2nd attempt Greg has the following utility function: u = x0.55x0.45. He has an income of $96.00, and he faces these prices: (P1, P2) = (10.00, 8.00). Suppose that the price of x₁ increases by $1.00. Calculate the compensating variation for this price change. Give your answer to two decimals. $
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- Greg has the following utility function: u=2057 20.43. He has an income of $96.00, and he faces these prices: (P1, P2) (9.00, 9.00). Suppose that the price of an increases by $1.00. Calculate the equivalent variation for this price change. =Greg has the following utility function: u = x1^0.361x 2^0.642. He has an income of $74.00, and he faces these prices: (p1, p2) = (9.00, 8.00). Suppose that the price of x1 increases by $1.00. Calculate the equivalent variation for this price change.2nd attempt Greg has the following utility function: u = x0.64x0.36. He has an income of $86.00, and he faces these prices: (P1, P2) = (9.00, 2.00). Suppose that the price of x₁ increases by $1.00. Calculate the equivalent variation for this price change. $
- Questions 1. Will's utility from vacations (91) and meals (92) is given by the function U(V, M) = 91 x 92. Last year, the price of vacations was $200 and the price of meals was $50. This year, the price of meals rose to $75, while the price of vacations remained the same. Both years, Will had an income of $1500. (a) What is the compensating variation for the price change in meals? (b) What is the equivalent variation for the price change in meals?x9.359.65 He has an income of $72.00, and he faces these prices: (p1, p2) = (2.00, 7.00). Greg has the following utility function: u = Suppose that the price of x1 increases by $1.00. Calculate the compensating variation for this price change. Give your answer to two decimals. $Greg has the following utility function: u = x0.47x953. He has an income of $52.00, and he faces these prices: (p₁. p₂) = (1.00, 3.00). Suppose that the price of x, increases by $1.00. Calculate the equivalent variation for this price change.
- Greg has the following utility function: u = x49x9.51 He has an income of $75.00, and he faces these prices: (P1, P2) = (4.00, 1.00). Suppose that the price of x1 increases by $1.00. Calculate the compensating variation for this price change. Give your answer to two decimals. $Eren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Suppose that the Department of Welfare wants to know how much should begiven to Eren to offset his change un utility due to the price increase of an expensivemeal. Calculate the compensative variation (CV).Eren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Calculate for the equivalent variation (EV) for the price change.
- Eren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Calculate the change in consumer surplus from consuming the expensivemeals considering the price change (Hint: you need to compare his optimalconsumption bundle before and after the price change to get the change in CS).Greg has the following utility function: u=x1^0.67 x2^0.33. He has an income of $83.00, and he faces these prices: (p1,p2)=(2.00,3.00). Suppose that the price of x1 increases by $1.00. Calculate the compensating variation for this price change. Give your answer to two decimals.Upon graduating from UT this May, you take on a management position working at UtMax theater. You will consider the utility of seeing performance over 1 month, and suppose that at a regular price of $$$ per ticket (my assigned ticket price is 145), customers will see no performance, however with the price reduced by $5, customers will see one performance per month and when reduced by $10, customers will see two performances. As long as the number performances, x, is small, your demand function for performance can be modeled by p=D(x). Write down your demand function.