A compensated demand curve contains no
A) income effects.
B) substitution effects.
C) price elasticity.
D) income compensation.

Question

Quizplus · Accepted Answer

A compensated demand curve, by definition, eliminates the income effect of a price change, focusing solely on the substitution effect. This is achieved by adjusting the consumer's income to keep their utility level constant despite the price change.

A Compensated Demand Curve Contains No