Chizzy’s has a utility function U(x1,x2) = x1x2. He originally faces the prices ($1,$1) and has...

Chizzy’s has a utility function U(x_1,x₂) = x₁x_2. He originally faces the prices ($1,$1) and has income $50. If the price of good 1 falls $0.5. What is the change in consumer surplus, compensating and equivalent variation?

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Rahul Sunny answered 1 year ago

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