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Uploaded on Nov 8, 2009
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 to these videos (organized by topic), check out the Intromediate Microeconomics video web page: