Lecture 3 Flashcards
1
Q
What is the Hicks-Kaldor compensation principle?
A
2
Q
Why might the kaldor-Hicks compensation principle not hold true?
A
3
Q
Mathematically how can we show the change in utility for more than one agent?
A
4
Q
How does the equity principle interact with individuals of different incomes?
A
5
Q
When does an allocation change pass the compensation test?
A
6
Q
What is the inverse demand function?
A
7
Q
how do you create a market demand curve?
A
8
Q
What is the change in CS for the following example?
A
9
Q
What is compensation variation
A
10
Q
What is Equivalent Variation?
A
11
Q
How would you show both Equivalent Variation and compensation variation?
A
