Question

Given potential price is Rs.250 and the actual price is Rs.200. Find the consumer surplus.
a. 375
b. 175
c. 200
d. 50

Answer 1

Answer:

c - 50rs

the potential means possible price is 250rs and actual price is 200rs

consumer surplus becomes rs.50

at rs.50 he wil be more satisfy with actual price

Answer 2

Answer:

d. 50

Explanation:

Potential price = Rs. 250

Actual price = Rs. 200.

Consumer surplus is described as the difference between the complete quantity customers are prepared to pay for a good or service as stated by curve of supply and the complete amount they actually pay which is the market price.

Therefore,

Consumer surplus = Maximum price – actual price

= 250- 200

= 50

Thus, the the consumer surplus is Rs. 50