Posted by Writeacher on Saturday, May 26, 2007 at 1:23pm.
Homework or not, you need to post your question and how far you've gotten in your thinking toward the "answer" in order for someone here to be helpful to you.
Please be patient and wait for someone with economics expertise to respond to you.
Thanks.
that's not homework.the reason for me posting here is only for learning.
show therelationship of the compensating variation to the consumer surplus
measure of the same price rise. What factors affect how close these
two measures are to each other.
anyone help?
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So far, it doesn't seem that you have tried to come up with your own responses. Once
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the compensating variation is the income you need to spend in order to restore you to the orginal indifferent curve and the Consumer Surplus is the areas left of the demand curve .but...is that any relationship between that???
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