Question: Marvin has a Cobb-Douglas utility function, U = q1 0-5q20.5 his income is Y = $500, and initially he faces prices of p, = $1


Marvin has a Cobb-Douglas utility function, U = q1 0-5q20.5 his income is Y = $500, and initially he faces prices of p, = $1 and p2 = $4. If p, increases from $1 to $5, what are his compensating variation (CV), change in consumer surplus (ACS), and equivalent variation (EV)? Marvin's compensating variation (CV) is $ . (Enter your response rounded to two decimal places and include a minus sign if necessary.) Marvin's change in consumer surplus (ACS) is $ . (Enter your response rounded to two decimal places and include a minus sign if necessary.) Marvin's equivalent variation (EV) is $ . (Enter your response rounded to two decimal places and include a minus sign if necessary.)
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