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Ricardo's utility depends on his consumption of good q1 and good q2, where the price of good q1 is initially $30 and the price of good q2 is $15. At the original prices, his compensated demand for good q1 is q1 = 39.583(p2/p1)0.4. The price of good q1increases from $30 to $60. At the new price. Ricardo's compensated demand for good q1 is q1= 26.114(p2/p1)0.4(i) What is Ricardo's compensating variation? Ricardo's compensating variation (CV) is CV =_____.(ii) What is Ricardo's equivalent variation? Ricardo's equivalent variation (EV) is EV =_____ .

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Answer: 67

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