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Explain why an economist might be required to use compensating variation to calculate consumer surplus. In which situation would an economist need to worry for
Explain why an economist might be required to use compensating variation to calculate consumer surplus. In which situation would an economist need to worry for bias?
HINT: this is a hard question, there is a clear and definite answer to this - you can't be vague or you will receive a nonvague amount of point : 0. You need 2 paragraphs to answer this question. (i'm joking of course, but try your best, start from what Consumer surplus is, what compensating variation is .... )
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