Question: 2.1 In the Application Compensating Variation and Equivalent Variation for Smartphones and Facebook, people were asked how much they would have to be paid not
2.1 In the Application “Compensating Variation and Equivalent Variation for Smartphones and Facebook,” people were 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. Use a graph to illustrate the compensating variation and equivalent variation in this Application. What is a better way to determine the equivalent variation?
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