LEC 28: Welfare Effects of Price Change

This lecture explains the concept of indifference curve and its application in optimizing the consumer’s utility, the concepts of compensating variation and equivalent variation and their application to assess the effects of price change on the welfare of the consumer.
KEYWORDS: Indifference curve; Utility function; Compensating variation; Equivalent variation; Price change
Prof. S.P. Singh
Humanities and Social Sciences
IIT Roorkee