Here Are Three Possible Definitions of "Compensating Variation

Multiple Choice

Here are three possible definitions of "Compensating Variation":
I.the amount a person would be willing to pay to avoid a price increase.
II.the amount of additional income needed to allow a person to restore his or her utility back to its initial level after it has been reduced by a price increase.
III.the amount of income that a person who experienced a price increase would be willing to pay to see the price return to its earlier level.
Which of these definitions is (are) correct?

A) ​Only I
B) ​I and II
C) ​II and III
D) ​Only III