A consumer surplus measures the

Economics

JAMB 2011

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

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Correct Answer: Option C

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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A consumer surplus measures the

Correct Answer: Option C

Explanation

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