Author Question: The Equivalent Variation for an increase in the price of a good is A) the reduction in a ... (Read 45 times)

asan beg

  • Hero Member
  • *****
  • Posts: 570
The Equivalent Variation for an increase in the price of a good is
 
  A) the reduction in a consumer's income necessary to harm the consumer by as much as the price increase.
  B) the increase in a consumer's income necessary to eliminate the consumer's harm from a price increase.
  C) the change in consumer surplus resulting from a price increase.
  D) the amount of money a consumer would accept to be subject to a price increase.

Question 2

Suppose in the ice-cream market with 10 firms, the elasticity of market demand is -1, and each firm has a constant marginal cost at 2. The Nash-Cournot equilibrium price is
 
  A) 2.
  B) 2.2.
  C) 2.4.
  D) 2.5.



cswans24

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

A

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

For a complete list of videos, visit our video library