CV, EV and the change in consumer's surplus are all illustrated as the trapezoid to the left of the demand curve between the new and old prices. Which of the following statements is correct?
A)EV is measured from the uncompensated demand
B)the change is CS is measured from the uncompensated demand
C)CV is measured from the compensated demand with the higher level of utility
D)the change in CS is measured from the compensated demand with the lower level of utility

Question

Quizplus · Accepted Answer

The change in consumer surplus (CS) is measured from the uncompensated demand curve, which reflects the actual market demand without adjustments for changes in utility.

CV, EV and the Change in Consumer's Surplus Are All