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Suppose that aggregate demand is such that it has all the properties of individual consumer demand. In this case we say that a representative consumer exists. We are considering two policy changes that each would lead to a price change of some good. The suggestion is made to use the Compensating Variation for the representative consumer to evaluate which of the policy changes is better.The Equivalent Variation should be used instead, because we want to achieve the new utility level with the policy. The Compensating Variation measure is an appropriate choice because we are only ranking the two policies, and CV and EV rank changes the same. O It is not valid to use the Compensating Variation for a representative consumer situation