Which of the following does NOT describe a compensating variation?
A) The amount of money that exactly compensates a consumer for a change in economic circumstances
B) The amount of money that produces an equivalent effect on a consumer's well-being
C) The most some one (someone) is willing to pay to experience something beneficial
D) The least someone is willing to pay to experience something harmful

Question

Quizplus · Accepted Answer

The Answer of Which of the following does NOT describe a compensating variation?
A) The amount of money that exactly compensates a consumer for a change in economic circumstances
B) The amount of money that produces an equivalent effect on a consumer's well-being
C) The most some one (someone) is willing to pay to experience something beneficial
D) The least someone is willing to pay to experience something harmful

Which of the Following Does NOT Describe a Compensating Variation