Compensating variations $5.$ Calculate compensations for a$.[7\mathrm{.}3]$ Bus pass:

u$($x$,$y$)=$x

$1/2$

y

$1/2$

$,$m$=8,$py$=1$

$.$ Non$-$member

px$=2$

$,$ member

px$=0\mathrm{.}5$

Find maximum fee to buy pass. b$.$ Pricing Jeans:

u$($x$,$y$)=$x

$1/2$

y

$1/2$

$,$m$=800,$py$=2$

$.$ Toronto

px$=100$

$.$ Transport to Buffalo costs $160.$ Find maximum px you would be willing to pay for Jeans in Buffalo. py

$=2$

in Buffalo too.