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Steve's Utility for Socks (Q1)and Other Goods (Q2)is Given by

Question 38

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Steve's utility for socks (q1)and other goods (q2)is given by
U(q1,q2)= 10q1.1 q2.9
The price of the composite good is p2 = 1 and the price of a pair of socks is p1 = 2.Steve's income is Y = 100.Every year,Steve's mom buys him 20 pairs of socks.Find the equivalent variation of the gift.What is the difference between the cost of the gift and the equivalent valuation cash amount?

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