Question: 2. In tutorials-ch4-I #2 Bobs's utility function was given as U = X12Y12 where X and Y are the quantities of the two different commodities.

2. In tutorials-ch4-I #2 Bobs's utility function was given as U = X12Y12 where X and Y are the quantities of the two different commodities. We derived his demand functions as; X = 1/ (2Px) Y = 1/ (2PY) Bob initially faces prices $10 for good X and $20 for good Y and she earns $360 each week. Suppose that price of X then falls to $6. Calculate the equivalent variation (EV) of the price change. Write in words what EV measures in this case

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