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JAMB Economics 2010 Question 14

Question 14

Theory of Consumer Behaviour

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

  1. A.₦1.50
  2. B.₦0.40
  3. C.₦1.00
  4. D.₦2.00
Show the answer and explanation

Answer: B (₦0.40)

Explanation

Consumer surplus = amount willing to pay − amount paid = 120k − 80k = 40k = ₦0.40.