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What is Welfare Analysis?
The role of economist is not limited to understanding the determination of prices and quantities but also to find out the value creation of market in a society. Economists name it as welfare analysis. It uses micro economics techniques to evaluate the market. The criteria for measuring welfare are efficiency and equity. When the goods are distributed to the people, they are assumed to gain maximum from them. Every consumer is treated as same irrespective of their initial level of utility.
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