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If a consumer plans to spend 120k on four oranges but spent 80k, his consumer...

Economics
JAMB 2010

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

  • A. N1.50
  • B. N0.40
  • C. N1.00
  • D. N2.00
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Correct Answer: Option B
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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