If a consumer plans to spend 120k on four oranges but spent 80k; his consumer surplus is?

By: |Published on: Oct 23|Categories: Economics JAMB| 0 comments

A. N1.50
B. N0.40
C. N1.00
D. N2.00

Correct Answer:

Option B – N0.40

Explanation

Consumer Surplus is the difference between the price that consumers pay and the price that they are willing to pay.

consumer surplus = 120 – 80 = 40

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