Question

Explain the concept of Consumer's surplus with a diagram short answer​

Answer 1

Answer:

Consumer's Surplus = Total Utility – (Total units purchased x marginal utility or price). In short, consumer's surplus is the positive difference between the total utility from a commodity and the total payments made for it. In Fig. ... If the price falls to R' S', he would buy OR' and his surplus would increase to DTS'.

Answer 2

Answer:

Consumer's Surplus = Total Utility – (Total units purchased x marginal utility or price). In short, consumer's surplus is the positive difference between the total utility from a commodity and the total payments made for it. In Fig. ... If the price falls to R' S', he would buy OR' and his surplus would increase to DTS'.

Explanation:

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