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:

Average Attendance

The mean number of individuals present over a specified number of events or time periods.

Residual

The difference between an observed value and the predicted value given by a statistical model.

R Squared

A statistical measure that represents the proportion of the variance for a dependent variable that's predicted from an independent variable or variables in a regression model.

Regression

A statistical method used to determine the relationship between a dependent variable and one or more independent variables.