A consumer has a demand function for good X given by . Where P is the price of good X. If the price of good X is Rs.50, the value of consumer's surplus is
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4 marks, −1MicroeconomicsConsumer preferences and utilityConsumer surplus and reservation pricesModerateabout 1 min
CUET-PG 2023 Shift 1 Question 80: Consumer preferences and utility
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A consumer has a demand function for good X given by D(P) = 100 - P. Where P is the price of good X. If the price of good X is Rs.50, the value of consumer's surplus is (A) Rs 1,250 (B) Rs 3,750 (C) Rs 2,250 (D) Rs 3,050
Consumer preferences and utility has come up 93 times in 7 exams since 2007.
What this question tests
This question is on Consumer surplus and reservation prices, part of Consumer preferences and utility in Microeconomics.
The gap between what a consumer is willing to pay and what is paid, measured from a demand curve.
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