 
 
 
 By compensating our consumer for the income effect, we place
her on the green compensated budget (CB).  Notice that the indifference curve she can now reach is higher than her original indifference curve.
    By compensating our consumer for the income effect, we place
her on the green compensated budget (CB).  Notice that the indifference curve she can now reach is higher than her original indifference curve.  
    Expenditure compensation slightly overcompensates, making the consumer slightly better off than before the price change.
 
 
 
 
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