The Equivalent Variation for an Increase in the Price of a Good

question 67

Multiple Choice

The Equivalent Variation for an increase in the price of a good is

• A)the reduction in a consumer's income necessary to harm the consumer by as much as the price increase.
• B)the increase in a consumer's income necessary to eliminate the consumer's harm from a price increase.
• C)the change in consumer surplus resulting from a price increase.
• D)the amount of money a consumer would accept to be subject to a price increase.

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Definitions:

Fear

An emotional response to perceived threats or dangers, resulting in physiological and behavioral reactions.

Conditioned Stimulus

A previously neutral stimulus that, after being repeatedly paired with an unconditioned stimulus, begins to trigger a conditioned response.

Discriminative Stimulus

A cue that signals the availability of reinforcement or punishment following a specific behavior, influencing its occurrence.

Secondary Reinforcers

Stimuli which become rewarding through their association with primary reinforcers, such as praise, tokens, or money.