A consumer has the quasi-linear utility function
U(q₁,q₂)= 64q₁^1/2 + q₂
Assume p₂= 1 and Y = 100.Find the consumer's compensating and equivalent variations for an increase in p₁ from 1 to 2.

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The Answer of A consumer has the quasi-linear utility function U(q₁,q₂)= 64q₁^1/2 + q₂ Assume p₂= 1 and Y = 100.Find the consumer's compensating and equivalent variations for an increase in p₁ from 1 to 2.

A Consumer Has the Quasi-Linear Utility Function