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djsmyers djsmyers
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Posts: 764
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6 years ago
Ed's utility from vacations (V) and meals (M) is given by the function U(V,M) = V2M. Last year, the price of vacations was $200 and the price of meals was $50. This year, the price of meals rose to $75, the price of vacations remained the same. Both years, Ed had an income of $1500.
a. Calculate the change in consumer surplus from meals resulting from the change in meal prices.
b. What is the compensating variation for the price change in meals?
c. Calculate the equivalent variation for the price change in meals.
Textbook 
Microeconomics: Theory and Applications with Calculus

Microeconomics: Theory and Applications with Calculus


Edition: 4th
Author:
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unExpectedunExpected
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6 years ago
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djsmyers Author
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6 years ago
This helped my grade so much Perfect
Tim0301
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Yesterday
Thank you, thank you, thank you!
jcarter
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2 hours ago
Smart ... Thanks!
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