Question: Let U(z,y) = 2x + 3y. Let I = $10, P, = $1 and P, = $2 be the initial set of prices and income.

Let U(z,y) = 2x + 3y. Let I = $10, P, = $1 and P, = $2 be the initial set of prices and income. Now, let P, rise to $2. What is the compensating variation in term ) of this change in price of good x? A. 2.25 B. 5.67 C. 7.40 D. 3.33

Let U(x, y) = 2x + 3y. Let1 = $10, P. = $1 and P, - $2 be the initial set of prices and income. Now, het Price to $2. What is there ) of this change in price of good ? A, 10 B.3.33 C 2.5 D. 6.5

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