Job is a smoker.He has a utility function for cigarettes smoked in bars (q₁)and a composite good (q₂)given by
U(q₁,q₂)= 10q₁.⁵ + q₂
Job's income is $100 and faces prices p₁ = 5 and p₂ = 1.The government is planning to ban smoking in bars.Compute the compensating variation.

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The Answer of Job is a smoker.He has a utility function for cigarettes smoked in bars (q₁)and a composite good (q₂)given by
U(q₁,q₂)= 10q₁.⁵ + q₂
Job's income is $100 and faces prices p₁ = 5 and p₂ = 1.The government is planning to ban smoking in bars.Compute the compensating variation.

Job Is a Smoker