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21-01-2024
Mathematics

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Suppose that Lucy’s quasilinear utility function in Solved Problem 5.2 is U(q1, q2) = 2q1 0.5 + q2, p 1 = 2, p2 = 4, p1 = 4, q1 = q1(p1) = 4, q1 = q1(p1) = 1. Compare her CV, EV, and S.

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