When EV = CV = CS:
A)the good is Giffen.
B)the good is neither normal nor inferior.
C)the good is inferior.
D)the good is normal.

Question

Quizplus · Accepted Answer

When EV (Equivalent Variation), CV (Compensating Variation), and CS (Consumer Surplus) are equal, it indicates that the good is neither normal nor inferior, as these measures reflect the consumer's valuation of changes in price or income without indicating the nature of the good.