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

question 31

Multiple Choice

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

• A)the minimum amount of money a consumer would accept to voluntarily accept the price increase.
• B)the maximum amount of money a consumer would pay to avoid the price increase.
• C)the change in consumer surplus resulting from a price increase.
• D)the change in utility resulting from the increase in price.

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