What Is the Difference Between Approximate and Exact Consumer Surplus

question 71

Multiple Choice

What is the difference between approximate and exact consumer surplus?

• A) Approximate consumer surplus is calculated using an uncompensated demand curve, while exact consumer surplus is calculated using a compensated demand curve.
• B) Approximate consumer surplus is calculated using a compensated demand curve, while exact consumer surplus is calculated using an uncompensated demand curve.
• C) There is no difference between approximate and exact consumer surplus.
• D) Approximate consumer surplus can be measured, while exact consumer surplus cannot be measured.