Regarding environmental economics: compensating and equivalent surplus:

Assume a representative consumer has utility function of the general form:

U(x,q),

where x is a vektor of market goods & services with the corresponding price vektor p, and q is a scalar measure of general environmental quality. Assume that the economic agent has a fixed, exogenous income equal to M.

a) derive both primal and dual representations of the compensating surplus (CS)

a)also derive with respect to equivalent surplus