Homework answers / question archive / Matt derives all of his utility from consuming milk shakes

Matt derives all of his utility from consuming milk shakes

Economics

Share With

Matt derives all of his utility from consuming milk shakes. He devotes his entire $20 allowance to milk shakes each week. Suppose the price of milk shakes rise from $2 to $4. Compute Matt's Equivalent Variation (EV) of this price increase.