The equivalent variation is always less than the consumer's income
Indicate whether the statement is true or false
True . The amount a person will pay to prevent a price change (EV) cannot exceed their available income.
Economics
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The imaginary figure who advises us whether society is making the most of its scarce resources is the
A) opportunity-cost pixie. B) benevolent social planner. C) scarcity goddess. D) compassionate dictator.
Economics
In the figure above, if the firm is regulated using a marginal cost pricing rule, the deadweight loss created is equal to the area of
A) ABG. B) BEFG. C) BCFG. D) BCE. E) None of the above because there is no deadweight loss created.
Economics