Question: anything but C Consider a consumer with preferences represented by a utility function U(x, y) = x3 y3 . The Hicksian (compensated) demands are x'

anything but C

Consider a consumer with preferences represented by a utility function U(x, y) = x3 y3 . The Hicksian (compensated) demands are x' = U 2py and y = U 3Px 3Px 2py The Marshallian (uncompensated) demands are x = 31 5Px 21 and y = 3p, The consumer's income is $50. Under prices px = 1 and py = 1 the consumer has utility of 25.51. Suppose the price of y increases by $2. What would the compensating variation (CV) be for this price change? O 12.31 O 24.49 30.56 O 40.00 O 46.66

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