Question: Question 1 Suppose Jiwon has a utility function U(x, y) = 205105. Her income is $100. The original prices of good a and good y

Question 1 Suppose Jiwon has a utility function U(x, y) =

Question 1 Suppose Jiwon has a utility function U(x, y) = 205105. Her income is $100. The original prices of good a and good y are $2 and $2, respectively. Suppose the price of good y increases to $4 while the price of good a remains the same. (a) Compute the Jiwon's compensating variations in income. (b) Compute the Jiwon's the equivalent variations in income

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