Home / Aptitude Tests / Economics / A consumer surplus m...

A consumer surplus measures the

...

A consumer surplus measures the

A.

Benefits derived from consuming a cheap commodity

B.

Excess of total expenditure over total uility

C.

Difference between marginal utility and marginal cost

D.

Excess of marginal utility over price

Correct answer is C

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.