Eren’s two main hobbies are taking vacations overseas (V) and eating expensive meals (M). His utility function is given as: U(V,M) = V^2M Last year, the average price of taking a vacation overseas was US$200 and the average price of an expensive meal is $50. However, due to supply problems in Onions, the average price of an expensive meal rose to $75. The average price of a vacation did not change. His income, which is $1500, did not change.  Calculate for the equivalent variation (EV) for the price change.

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Eren’s two main hobbies are taking vacations overseas (V) and eating expensive
meals (M). His utility function is given as: U(V,M) = V^2M

Last year, the average price of taking a vacation overseas was US$200 and the average
price of an expensive meal is $50. However, due to supply problems in Onions, the
average price of an expensive meal rose to $75. The average price of a vacation did not
change. His income, which is $1500, did not change. 

Calculate for the equivalent variation (EV) for the price change. 

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