In a society of two persons, person A wants to sell a book for which his reservation price is Rs. 400; person B wants to buy this book for which his reservation price is Rs. 360. Then,
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1 mark, −0.33MicroeconomicsConsumer preferences and utilityConsumer surplus and reservation pricesModerateabout 1 min
UoH 2015 Question 20: Consumer preferences and utility
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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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