New Enroll in RBI Gr B 2025 Exclusive New Batch on March 18

    Question

      Which method is used by Hicks to eliminate the income

    effect when price of a product is changed
    A Compensating variation in income Correct Answer Incorrect Answer
    B The cost difference Correct Answer Incorrect Answer
    C The over compensation effect Correct Answer Incorrect Answer
    D Substituting variation in price Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Compensating variation in income method is used by Hicks to eliminate the income effect when price of a product is changed.

    Practice Next