The compensated demand curve
A)shows how the quantity demanded changes when the price changes.
B)shows how income is compensated,so that the individual's commodity bundle stays on the same indifference curve.
C)is sometimes referred to as the Hicksian demand curve.
D)is all of the above.

Question

Quizplus · Accepted Answer

The compensated demand curve shows how the quantity demanded changes when the price changes while compensating for changes in income so that the individual's commodity bundle stays on the same indifference curve. This curve is also referred to as the Hicksian demand curve. So, option D is the correct answer.

The Compensated Demand Curve