Question

Consider u(x_{1},x_{2})=x_{1}^{0.5}x_{2}^{0.5} ,I=300,p_{1}=4,p_{2}=1. If p_{1} increases from $4 to $9, what is the compensating variation? Enter a number only, round to two decimals. If money needs to be taken away from the consumer include a negative sign.

Now consider what is the equivalent variation? Enter a number only, round to two decimals. If money needs to be taken away from the consumer include a negative sign.

8.4 Homework • Unanswered Consider u(x1, x2) = x9.5x9.5,1 = 300,P1 = 4,p2 = 1.1f P1increases from $4 to $9, what is the compe

0 0
Add a comment Improve this question Transcribed image text
Answer #1

tx 0,B, ,B9, Income: 300m DRS Putng MRS: e ratis use ged x m Qrupnal loundle 300 150:75.37:S- i xi030o(50 tety aehsed-(37-(15

Add a comment
Know the answer?
Add Answer to:
Consider ,,,. If increases from $4 to $9, what is the compensating variation? Enter a number only, round to two deci...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT