Her uncompensated demands for good q₁ and good 92 Therefore, her expenditure function (E) is 9₁ = 9₁=1.176U 0.6 0.4 U=9₁ 92 0.6Y P₁ and her compensated demands for good q₁ and good q2 are are and 92 = 0.4Y P2 0.4 P2 P₁ 2 0 2 2 (2 and 92 = 0.784U P₁ P2 0.6 E = 1.96ū (p₁0.6) (p₂0.4). P2 Let the price of good q₁ initially be $15 and the price of good q2 be $20. Kayla has income of $1,500. If the price of good q₁ increases from $15 to $30, what is Kayla's compensating variation? Kayla's compensating variation (CV) is CV = (Enter a numeric response using a real number rounded to two decimal places.)
Her uncompensated demands for good q₁ and good 92 Therefore, her expenditure function (E) is 9₁ = 9₁=1.176U 0.6 0.4 U=9₁ 92 0.6Y P₁ and her compensated demands for good q₁ and good q2 are are and 92 = 0.4Y P2 0.4 P2 P₁ 2 0 2 2 (2 and 92 = 0.784U P₁ P2 0.6 E = 1.96ū (p₁0.6) (p₂0.4). P2 Let the price of good q₁ initially be $15 and the price of good q2 be $20. Kayla has income of $1,500. If the price of good q₁ increases from $15 to $30, what is Kayla's compensating variation? Kayla's compensating variation (CV) is CV = (Enter a numeric response using a real number rounded to two decimal places.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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