Question 51
HardOriginal questionA consumer's marginal utility from good X, measured in rupees, is:
| Unit of good X | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| MU (in ₹) | 30 | 25 | 20 | 15 | 10 |
At a price of ₹20, how much more is the consumer willing to pay for the 3 units than he actually pays?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Willing to pay for 3 units = 30 + 25 + 20 = ₹75.
Actually pays 3 × ₹20 = ₹60. The difference is ₹75 − ₹60 = ₹15.
Worth noting
This gap is called consumer's surplus; it is a step beyond the CUET list, worked here only as arithmetic.
- Concept
- Gain from buying at a price below MU
- Typical timeTypical
- 100 s
- Your timeYours
- —
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