Question: Jacks utility function is U ( x 1 , x 2 ) = x 1 + 4 x 2 . His income is 60. The

Jack’s utility function is U(x₁, x₂) = x₁+ 4x₂. His income is 60. The price of good 1 is 1. The price of good 2 increases from 1 to 3. What is the equivalent variation of this price increase?

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