The difference between the equivalent variation and compensating variation is greater for goods with large income elasticities
Indicate whether the statement is true or false
True . According to the Slutsky equation, the difference between the compensated demand and uncompensated demand elasticity is given by the product of budget share and income elasticity. For larger income elasticities, the difference between these measures will also be larger.
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Which of the following is included in U.S. GDP?
i. the rental value of homes owned by U.S. citizens ii. the production of Suburban SUVs by GM in its plant in Mexico iii. tickets sold by U2 for concerts held in the United States A) i only B) ii only C) ii and iii D) i, ii and iii E) i and iii
Which of the following is not a government transfer program?
a. unemployment compensation b. Social Security c. food stamps d. Medicare e. movement of soldiers to a different military base