Given potential price is Rs.250 and the actual price is Rs.200. Find t

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

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

Answer»

(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