Chapter 6, Problem 5CP

(a)

To determine

Determine the uncompensated demand function for X as $\text{f}\left({\text{P}}_{\text{X}}\right)$. 

(b)

To determine

Determine Person S’s compensating variation (CV) for the price change:

(c)

To determine

Determine the compensated demand function for Good X, fixing the utility level achieved at the original price of Good $\text{X}\left({\text{P}}_{\text{X}}=\$20\right)$. 

(d)

To determine

Determine the change in the consumer surplus (CS)