GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The consumer’s surplus can be defined as
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Extra units of a commodity bought.
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Surplus commodity left after consumption.
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Difference between actual price and potential price.
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Total consumer satisfaction.
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Explanation:
Detailed explanation-1: -Consumer surplus is the difference between the highest price a consumer is willing to pay and the actual price they do pay for the good, or the market price.
Detailed explanation-2: -Consumer surplus is the difference between willingness to pay for a good and the price that consumers actually pay for it. Each price along a demand curve also represents a consumer’s marginal benefit of each unit of consumption.
Detailed explanation-3: -a) Consumer surplus is equal to the maximum amount a consumer is willing to pay for a good, minus what the consumer has to pay for the good.
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