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The Elasticity of the Compensated Demand Curve (ex,pλ)\left( e _ { x , p _ { \lambda } } \right)

Question 14

Multiple Choice

The elasticity of the compensated demand curve (ex,pλ) \left( e _ { x , p _ { \lambda } } \right) can be computed as


A) lex,pλl - e _ { x , p _ { \lambda } }
B) lex,pxex,pyl - e _ { x , p _ { x } } - e _ { x , p _ { y } }
C) sxex,I+ex,pxs _ { x } e _ { x , I } + e _ { x, p _ { { x } } }
D) sx(ex,Iex,px) .s _ { x } \left( e _ { x , I } - e _ { x , p _ { x } } \right) .

Correct Answer:

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