'Equivalent variation' presentation slideshows

Chapter 5 Consumer Welfare and Policy Analysis

Chapter 5 Consumer Welfare and Policy Analysis. The welfare of the people is the ultimate law. Cicero. Chapter 5 Outline. Challenge: Child-Care Subsidies 5.1 Consumer Welfare 5.2 Expenditure Function and Consumer Welfare 5.3 Market Consumer Surplus

718 views • 30 slides

Chapter 4 More Demand Theory

Chapter 4 More Demand Theory. The Law of Demand. The law of demand implies an inverse relationship between price and quantity demanded. When the price and quantity of a good are positively related, the good is called a Giffen Good. Income and Substitution Effects.

460 views • 29 slides

Consumer Surplus

Consumer Surplus. Demand function:. Demand Curve:. Demand Function and Demand Curve. Consider a demand function The inverse demand function is. Cobb-Douglas example:. Inverse Demand Function. Inverse Demand Curve. Optimal choice: Suppose: (composite good) Rearrange:.

616 views • 24 slides

Measuring Welfare Changes of Individuals

Measuring Welfare Changes of Individuals. Exact Utility Indicators Equivalent Variation (EV) Compensating Variation (CV) Relationship between Exact Utility Indicators and Consumer Surplus (CS) How accurate an approximation of utility change is CS? See Zerbe and Dively, Chapter 5.

540 views • 22 slides

Welfare Measure with Price Changes

Welfare Measure with Price Changes. Compensating Variation (old utility, new prices) Price Decrease The income that could be taken away from the consumer to make them as happy as before Price Increase The income that would be given to make the consumer as happy as before the change

689 views • 20 slides

More on Conditionals

365 views • 15 slides

Introduction to Microeconomics (L11100)

Introduction to Microeconomics (L11100). Section 3: Consumer Welfare and Household as Supplier. Lectures 8 - 11. Outline. 3.1 Compensating and Equivalent Variations in Income (Lecture 8) 3.2 Consumer Surplus (Lecture 9) 3.3 Labour Supply (Lecture 10) 3.4 Dynamic Consumption (Lecture 11).

364 views • 13 slides

Introduction to Microeconomics (L11100)

Introduction to Microeconomics (L11100). Section 3: Consumer Welfare and Household as Supplier. Lectures 8 - 11. Outline. 3.1 Compensating and Equivalent Variations in Income (Lecture 8) 3.2 Consumer Surplus (Lecture 9) 3.3 Labour Supply (Lecture 10) 3.4 Dynamic Consumption (Lecture 11).

240 views • 13 slides