Given potential price is Rs.250 and the actual price is Rs.200. Find the consumer surplus.a. 375b. 175c. 200d. 50
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(d) Consumer surplus is considered to be a highly economic measurement that is helpful in calculation of benefit.
It is the difference between the amount consumers are willing to pay for a service and market price.
Given, potential price of Rs. 250 and actual price is Rs. 200.
Therefore, the consumer surplus can be easily calculated by the formula:
Consumer surplus = Maximum will price – actual price = Rs.(250- 200) = Rs.50
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