Compensated Variation:
Compensated variation (CV) is a measure of the change in welfare resulting from a price change. It measures the maximum amount of money an individual would be willing to pay to avoid a price change and still be as well off as before. In other words, it represents the monetary compensation that would leave the consumer indifferent between the initial and new situations.

Equivalent Variation:
Equivalent variation (EV) is another measure of the change in welfare resulting from a price change. It measures the maximum amount of money an individual would be willing to pay to experience a price change and still be as well off as before. In other words, it represents the monetary compensation that would leave the consumer indifferent between the new and initial situations.

Consumer Surplus:
Consumer surplus is the difference between the total amount that consumers are willing to pay for a good or service and the total amount that they actually pay. It represents the net benefit or gain obtained by consumers from purchasing a good at a price lower than their willingness to pay.

Normal Good:
A normal good is a type of good for which demand increases as consumer income increases, and demand decreases as consumer income decreases. The relationship between income and demand for a normal good is positive. In the context of compensated variation, equivalent variation, and consumer surplus:
- Compensated variation: A decrease in the price of a normal good would result in an increase in compensated variation, as consumers would be willing to pay less to avoid the price change and still be as well off as before.
- Equivalent variation: An increase in the price of a normal good would result in a decrease in equivalent variation, as consumers would be willing to pay less to experience the price change and still be as well off as before.
- Consumer surplus: A decrease in the price of a normal good would result in an increase in consumer surplus, as consumers would be able to obtain the good at a lower price than their willingness to pay.

Inferior Good:
An inferior good is a type of good for which demand decreases as consumer income increases, and demand increases as consumer income decreases. The relationship between income and demand for an inferior good is negative. In the context of compensated variation, equivalent variation, and consumer surplus:
- Compensated variation: A decrease in the price of an inferior good would result in a decrease in compensated variation, as consumers would be willing to pay less to avoid the price change and still be as well off as before.
- Equivalent variation: An increase in the price of an inferior good would result in an increase in equivalent variation, as consumers would be willing to pay more to experience the price change and still be as well off as before.
- Consumer surplus: A decrease in the price of an inferior good would result in a decrease in consumer surplus, as consumers would be able to obtain the good at a lower price but their willingness to pay would be lower due to the inferior nature of the good.

Giffen Good:
A Giffen good is a type of good for which demand increases as the price increases, and demand decreases as the price decreases. The relationship between price and demand for a Giffen good is positive. In the context of compensated variation, equivalent variation, and consumer surplus:
- Compensated variation: A decrease in the price of a Giffen good would result in a decrease in compensated variation, as