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Management · Q19

Managerial Economics

Graduate and Post Graduate · Management · question 19

Q19

When the price of one commodity in a combination of commodities falls in such a way that the consumer's real income changes but he remains on the same level of satisfaction as before, it is known as

A.
Income effect
B.
Variation effect
C.
Price effect
D.
Compensating variation in income
Answer

Answer: Option D

Solution

Answer: Option D
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