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In: Economics

Ed's utility from vacations (V) and meals (M) is given by the function U(V,M) = V2M....

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. In both years, Ed had an income of $1500. Calculate the ΔCS, CV, and EV from the change in meal prices.

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Rahul Sunny answered 1 year ago
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