现代观点讲义中级微观ch14consumer s surplus and cv ev-v.pptVIP

Chapter Fourteen Consumer’s Surplus Monetary Measures of Gains-to-Trade You can buy as much gasoline as you wish at $1 per gallon once you enter the gasoline market. Q: What is the most you would pay to enter the market? Monetary Measures of Gains-to-Trade A: You would pay up to the dollar value of the gains-to-trade you would enjoy once in the market. How can such gains-to-trade be measured? Monetary Measures of Gains-to-Trade Three such measures are: Consumer’s Surplus Equivalent Variation, and Compensating Variation. Only in one special circumstance do these three measures coincide. $ Eq