Equivalent Variation and Compensating Variation

Economists use the idea of EV and CV to among other things compute individual Willingness to Pay for environmental protection or willingness to accept compensation for environmental degradation. But the basic ideas of EV and CV have broad applications for anytime a consumer is made worse (or better) off due to a change in the price of a single good.

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Hi Sir! Thanks for sharing this video. It's really helpful for me to have good understanding in CV and EV Concept. Wish you will release the version of CV and EV explanation on the better environment quality. Will it be just the reverse?