The Equivalent Variation for an increase in the price of a good ...

[asan beg]

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]

Answer to Question 1

A

Answer to Question 2

A