16. Compensating Variation and Equivalent Variation
6:18
YouTubeIntromediate Econ
16. Compensating Variation and Equivalent Variation
In this video, I introduce two measures of consumer welfare: compensating variation and equivalent variation. In the process of introducing these concepts, I demonstrate how to identify CV and EV graphically, and I give an intuition for how these compensation techniques measure consumer welfare. For a list of videos from this channel and links ...
148.9K viewsNov 9, 2009
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