A consumer surplus measures the
ECONOMICS
JAMB 2011
A consumer surplus measures the
- A. benefits derived from consuming a cheap commodity
- B. excess of total expenditure over total uility
- C. difference between marginal utility and marginal cost
- D. excess of marginal utility over price
Correct Answer: C. difference between marginal utility and marginal cost
Explanation
Consumer Surplus is the difference between the price that consumers pay and the price that they are willing to pay. For instance if mr A budgeted N100 for commodity X and ended up buying it for 150, consumer surplus is 150-100=50.
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