Question: 2. (6 Total Points) Suppose a consumer's utility function is given by U(X, Y) = MIN (4X, Y). Also, the consumer has $40 to spend,

2. (6 Total Points) Suppose a consumer's utility function is given by U(X, Y) = MIN (4X, Y). Also, the consumer has $40 to spend, and the price of Good X, Py = $1. Let Good Y be a composite good whose price is Py =$1. So on the Y-axis, we are graphing the amount of money that the consumer has available to spend on all other goods for any given value of X. Now suppose Py increases to $4. i) (3 points) Calculate the Compensating Variation: CV = ii) (3 points) Calculate the Equivalent Variation: EV =

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