The compensated demand curve is obtained by:
A)minimizing expenditure.
B)maximizing utility.
C)keeping the money income constant.
D)compensating the consumer from the loss in utility.

Question

Quizplus · Accepted Answer

The compensated demand curve is derived by minimizing expenditure while maintaining a constant level of utility, reflecting how much of a good a consumer would buy if compensated for price changes to keep utility unchanged.

The Compensated Demand Curve Is Obtained By