Equivalent Variation and Compensating Variation
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Economists use the idea of
Economists use the idea of EV and CV to among other things compute individual Willingness to Pay for environmental protection or willingness to accept compensation for environmental degradation. But the basic ideas of EV and CV have broad applications for anytime a consumer is made worse (or better) off due to a change in the price of a single good.
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در تاریخ 1401/07/08 منتشر شده
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