Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text: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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