Question: In the application Compensating Variation and Equivalent Variation for the Internet, people are asked how much they would have to be paid not to use

In the application "Compensating Variation and Equivalent Variation for the Internet," people are asked how much they would have to be paid not to use the Internet or what else they'd have to give up to keep using it. What are these measures called? Graph what is being measured. Is there a better way to determine the equivalent variation?

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Compensating variation is the amount of money that would fully compensate an individual for a price ... View full answer

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