Question: Greg has the following utility function: u = x.80x.20 (Cobb-Douglas). He has an income of $86.00, and he faces these prices: (P1, P2) = (1.00,

Greg has the following utility function: u = x.80x.20 (Cobb-Douglas). He has an income of $86.00, and he faces these prices: (P1, P2) = (1.00, 1.00). Suppose that the price of x1 increases by $1.00. Calculate the compensating variation for this price change. Give your answer to two decimals.

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