CA Foundation Exam  >  CA Foundation Questions  >  When total utility is 212, consumer spends 10... Start Learning for Free
When total utility is 212, consumer spends 100 the consumer surplus is? 1. 122 2. 100 3. 112 4. 312?
Most Upvoted Answer
When total utility is 212, consumer spends 100 the consumer surplus is...
Explanation:
Before moving to the answer, let's understand the meaning of consumer surplus.

Consumer Surplus: It is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay. It is the benefit that consumers receive for paying less than the maximum price they would be willing to pay.

Now, let's solve the problem step by step.

Given:
Total utility = 212
Amount spent = 100

Calculating Consumer Surplus:
To calculate consumer surplus, we need to find the maximum amount that the consumer is willing to pay for the product, which is equal to the total utility.

Therefore, maximum amount consumer is willing to pay = 212

Now, we need to find the difference between the maximum amount the consumer is willing to pay and the amount the consumer actually pays.

Consumer Surplus = Maximum amount consumer is willing to pay - Amount consumer actually pays

Consumer Surplus = 212 - 100

Consumer Surplus = 112

Therefore, the consumer surplus is 112.

Answer:
The correct option is 3. 112.
Explore Courses for CA Foundation exam
When total utility is 212, consumer spends 100 the consumer surplus is? 1. 122 2. 100 3. 112 4. 312?
Question Description
When total utility is 212, consumer spends 100 the consumer surplus is? 1. 122 2. 100 3. 112 4. 312? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about When total utility is 212, consumer spends 100 the consumer surplus is? 1. 122 2. 100 3. 112 4. 312? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When total utility is 212, consumer spends 100 the consumer surplus is? 1. 122 2. 100 3. 112 4. 312?.
Solutions for When total utility is 212, consumer spends 100 the consumer surplus is? 1. 122 2. 100 3. 112 4. 312? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of When total utility is 212, consumer spends 100 the consumer surplus is? 1. 122 2. 100 3. 112 4. 312? defined & explained in the simplest way possible. Besides giving the explanation of When total utility is 212, consumer spends 100 the consumer surplus is? 1. 122 2. 100 3. 112 4. 312?, a detailed solution for When total utility is 212, consumer spends 100 the consumer surplus is? 1. 122 2. 100 3. 112 4. 312? has been provided alongside types of When total utility is 212, consumer spends 100 the consumer surplus is? 1. 122 2. 100 3. 112 4. 312? theory, EduRev gives you an ample number of questions to practice When total utility is 212, consumer spends 100 the consumer surplus is? 1. 122 2. 100 3. 112 4. 312? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev