2nd attemptGreg 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 $1.00. Calculate the equivalent variation for this price change.$

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y function: u = x0.64x2.36. He h by $1.00. Calculate t increases

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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.
$

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