What effect does a compensated price change have on a consumer's well-being?
A) The consumer's well-being increases
B) The consumer's well-being decreases
C) The consumer's well-being is unaffected
D) The effect of the consumer's well-being can not be determined

Question

Quizplus · Accepted Answer

A compensated price change, by definition, adjusts the consumer's income or purchasing power to offset the price change, leaving their ability to purchase goods and their overall well-being unaffected.

What Effect Does a Compensated Price Change Have on a Consumer's