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: 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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