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Which of the Following Does NOT Describe a Compensating Variation

Question 8

Multiple Choice

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

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