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UI Post-UTME Economics 2023 (Model questions) Question 17

Question 17

Theory of Consumer Behaviour

When the price paid by a consumer is below what he expected to pay, ________ occurs

  1. A.consumer sovereignty
  2. B.consumer surplus
  3. C.producer surplus
  4. D.producer sovereignty
Show the answer and explanation

Answer: B (consumer surplus)

Explanation

Consumer surplus is the difference between what a buyer is willing to pay and what he actually pays.