Question: Greg has the following utility function: u = x0.55 x945. He has an income of $73.00, and he faces these prices: (P1 , p2) =

Greg has the following utility function: u = x0.55 x945. He

Greg has the following utility function: u = x0.55 x945. He has an income of $73.00, and he faces these prices: (P1 , p2) = (9.00, 6.00). Suppose that the price of x 1 increases by $1.00. Calculate the compensating variation for this price change. Give your answer to two decimals. S

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