-In the Above Figure Point a Is the Original Consumption

question 110

Multiple Choice

-In the above figure point A is the original consumption point.The movement from point A to point C is due to a fall in the price of good Y.Note that B¹,B²,and B³ are budget constraint lines with incomes M¹,M²,and M³ respectively.Also note that B² and B³ are parallel.Calculate the compensating variation (CV) .

• A) CV = M³ - M¹.
• B) CV = M³ - M².
• C) CV = M¹ - M².
• D) CV = M¹ - M³.

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The compensation, often periodic, given to a teacher or educator for their services.

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An educational class or program that teaches the principles, standards, and practices of accounting.

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Cost of Goods Sold (COGS) represents the direct costs attributable to the production of goods sold by a company, including material and labor costs.

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