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Let U(x,y) = with MUx = and MUy

Question 7

Multiple Choice

Let U(x,y) = Let U(x,y) = with MU<sub>x</sub> = and MU<sub>y</sub> = .Let I = $100,P<sub>x</sub> = $25 and P<sub>y</sub> = $10 be the initial set of prices and income.Now,let P<sub>x</sub> fall to $10.What is the approximate compensating variation for this change in prices? A) 24 B) 30 C) 34 D) 40 with MUx = Let U(x,y) = with MU<sub>x</sub> = and MU<sub>y</sub> = .Let I = $100,P<sub>x</sub> = $25 and P<sub>y</sub> = $10 be the initial set of prices and income.Now,let P<sub>x</sub> fall to $10.What is the approximate compensating variation for this change in prices? A) 24 B) 30 C) 34 D) 40 and MUy = Let U(x,y) = with MU<sub>x</sub> = and MU<sub>y</sub> = .Let I = $100,P<sub>x</sub> = $25 and P<sub>y</sub> = $10 be the initial set of prices and income.Now,let P<sub>x</sub> fall to $10.What is the approximate compensating variation for this change in prices? A) 24 B) 30 C) 34 D) 40 .Let I = $100,Px = $25 and Py = $10 be the initial set of prices and income.Now,let Px fall to $10.What is the approximate compensating variation for this change in prices?


A) 24
B) 30
C) 34
D) 40

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