Refer to the veggies/meat question in the previous homework set. Assume that the price of vegetables increases to $4 per pund. Please do the following.
(Paul enjoys meat and vegetables according to the following utitly function U(M,V) = 5M^.6 * V^.4
1.) Calculate the size of the substitution effect - the change in the amount of veggies consumed if he gets compensated for the change in price to afford the same utility. How large should the compensation be?