Steve's utility for socks (q₁)and other goods (q₂)is given by
U(q₁,q₂)= 10q₁^.1q₂^.9
The price of the composite good is p₂= 1 and the price of a pair of socks is p₁ = 2.Steve's income is Y = 100.Every year,Steve's mom buys him 20 pairs of socks.Find the equivalent variation of the gift.What is the difference between the cost of the gift and the equivalent valuation cash amount?

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The Answer of Steve's utility for socks (q₁)and other goods (q₂)is given by U(q₁,q₂)= 10q₁^.1q₂^.9 The price of the composite good is p₂= 1 and the price of a pair of socks is p₁ = 2.Steve's income is Y = 100.Every year,Steve's mom buys him 20 pairs of socks.Find the equivalent variation of the gift.What is the difference between the cost of the gift and the equivalent valuation cash amount?

Steve's Utility for Socks (Q1)and Other Goods (Q2)is Given by

Steve's Utility for Socks (Q₁)and Other Goods (Q₂)is Given by