Question: Redraw Figure 5.4 using an equivalent variation rather than a compensating variation approach. Figure 5.4 40 30 20 10 -/1 12 16 24 30 40

Redraw Figure 5.4 using an equivalent variation rather than a compensating variation approach.

Figure 5.4

40 30 20 10 -/1 12 16 24 30 40 60 T, Music tracks per quarter Income effect + Substitution effect Total effect M, Live m

40 30 20 10 -/1 12 16 24 30 40 60 T, Music tracks per quarter Income effect + Substitution effect Total effect M, Live music per quarter 2.

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