The Concept of Compensating Variation Means

question 14

Multiple Choice

The concept of compensating variation means:

• A)the change in income necessary to hold the consumer at the final level of utility as price changes.
• B)the change in income necessary to restore the consumer to the initial level of utility as price changes.
• C)the income effect.
• D)the substitution effect.

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Definitions:

80s

A decade marked by significant cultural, political, and technological changes, spanning the years 1980 to 1989.

Pessary

A medical device inserted into the vagina to support its structure and help with conditions like pelvic organ prolapse.

Prolapsed Uterus

A condition where the uterus descends from its normal position into or through the vaginal canal due to weakened pelvic floor muscles.

Vagina

The muscular tube leading from the external genitals to the cervix of the uterus in females.