JAMB - Economics (2011 - No. 5)
A consumer surplus measures the
benefits derived from consuming a cheap commodity
excess of total expenditure over total uility
difference between marginal utility and marginal cost
excess of marginal utility over price
Explanation
Consumer Surplus is the difference between the price that consumers pay and the price that they are willing to pay. For instance if mr A budgeted N100 for commodity X and ended up buying it for 150, consumer surplus is 150-100=50.
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