Suppose a Consumer's utility function is given by U(X,Y) = X1/2*Y1/2.
The Consumer has $108 to spend (M = $108).
The price of Good Y is PY = $1.
The price of Good X is initially PX = $1, and then the price of Good X increases to PX = $9.
a) Calculate the Compensating Variation (since PX increases, this will be a positive number.)
Compensating Variation = ________________________