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On the geometry of the consumer's surplus line integral

By Paolo Delle Site

Abstract

Consumer's surplus can be seen as a correct measure of the change in welfare under special conditions on the preferences of the consumer. The note addresses the question whether the intuitive appeal of the consumer''s surplus concept in the one-price change case extends into cases where several prices of inter-related goods change. An intuitively justified attribution of the change in welfare is conjectured. Sufficient conditions for this attribution to be exactly consistent with the geometry of the consumer''s surplus line integral are discussed.

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Citations

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