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why might measuring ampolicy change's welfare impact using consumer surplus result in a different amount if...

why might measuring ampolicy change's welfare impact using consumer surplus result in a different amount if it is calculated before the change than if it is calculated after the change take place? it this a serious problem? (10 points)

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Answer #1

Cinsuner surplus shall be more using welfare impact of Ampolicy after change takes place as consuners will be more aware of benefits and will assess the cost simultaneously. Due to higher benefits the demand rises and surpasses the supply and hence consumers will be willibg to pay higher amount than before which was anticipated in search of higher benefits which will lead to higher consumer surplus. However this is not serious problem as the difference shall be marginal and not huge.

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