When the price of one commodity in a combination of commodities falls in such a way that the consumer's real income changes but he remains on the same level of satisfaction as before, it is known as
A. Income effect
B. Variation effect
C. Price effect
D. Compensating variation in income
Answer: Option D
Related Questions on Managerial Economics
The emphasis of managerial economics is on
A. Bonus theory
B. Normative theory
C. System theory
D. Accounting theory
Which is not the subject of Managerial Economics?
A. Accounting Theory
B. Pricing Decision, Policies and Practices
C. Capital Management
D. Profit Management
Which is not covered under the scope of managerial economics?
A. Profit management
B. Accounting theory
C. Pricing policies
D. Production analysis

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