Question: 10. Maria's utility function is U = 22:0'5 + y. The prices of a; and y are pm = 1 and pg = 1. Maria's

10. Maria's utility function is U = 22:0'5 + y. The prices of a; and y are pm = 1 and pg = 1. Maria's income is I = 10. Then the price of :1: increases to p; = 2. Find the compensating variation of this price change. (a) CV = 0.5. (b) CV = 1. (c) CV = 2

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