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Marvin has a Cobb-Douglas utility function, 0.5 0.5 his income is Y = $700, and initially he faces prices of p₁ = $4 and p₂ = $4. If p, increases from $4 to $5, what are his compensating variation (CV), change in consumer surplus (ACS), and equivalent variation (EV)? Marvin's compensating variation (CV) is $. (Enter your response rounded to two decimal places and include a minus sign if necessary.) Marvin's change in consumer surplus (ACS) is $. (Enter your response rounded to two decimal places and include a minus sign if necessary.) Marvin's equivalent variation (EV) is $. (Enter your response rounded to two decimal places and include a minus sign if necessary.)

Marvin has a Cobb-Douglas utility function, 0.5 0.5 his income is Y = $700, and initially he faces prices of p₁ = $4 and p₂ = $4. If p, increases from $4 to $5, what are his compensating variation (CV), change in consumer surplus (ACS), and equivalent variation (EV)? Marvin's compensating variation (CV) is $. (Enter your response rounded to two decimal places and include a minus sign if necessary.) Marvin's change in consumer surplus (ACS) is $. (Enter your response rounded to two decimal places and include a minus sign if necessary.) Marvin's equivalent variation (EV) is $. (Enter your response rounded to two decimal places and include a minus sign if necessary.)

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Marvin has a Cobb-Douglas utility function, 0.5 0.5 U=q₁0,5₂0 his income is Y = $700, and initially he faces prices of p₁ = $4 and p₂= $4. If p, increases from $4 to $5, what are his compensating variation (CV), change in consumer surplus (ACS), and equivalent variation (EV)? Marvin's compensating variation (CV) is $. (Enter your response rounded to two decimal places and include a minus signif necessary.) Marvin's change in consumer surplus (ACS) is $. (Enter your response rounded to two decimal places and include a minus sign if necessary.) Marvin's equivalent variation (EV) is $. (Enter your response rounded to two decimal places and include a minus sign if necessary.)
Transcribed Image Text:Marvin has a Cobb-Douglas utility function, 0.5 0.5 U=q₁0,5₂0 his income is Y = $700, and initially he faces prices of p₁ = $4 and p₂= $4. If p, increases from $4 to $5, what are his compensating variation (CV), change in consumer surplus (ACS), and equivalent variation (EV)? Marvin's compensating variation (CV) is $. (Enter your response rounded to two decimal places and include a minus signif necessary.) Marvin's change in consumer surplus (ACS) is $. (Enter your response rounded to two decimal places and include a minus sign if necessary.) Marvin's equivalent variation (EV) is $. (Enter your response rounded to two decimal places and include a minus sign if necessary.)
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