The Concept of Equivalent Variation Means

question 31

Multiple Choice

The concept of equivalent 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:

Days' Sales Uncollected

A financial metric reflecting the average number of days it takes for a company to collect payment after making a sale.