CA Foundation Exam > CA Foundation Questions > The satisfaction which a consumer derives in ...
Start Learning for Free
The satisfaction which a consumer derives in the consumption of a commodity is equal to Rs. 320. The price of that commodity is Rs. 180. What will be his consumer surplus?
- a)180
- b)200
- c)140
- d)500
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
The satisfaction which a consumer derives in the consumption of a comm...
Consumer Surplus Calculation
Given:
Price of commodity (P) = Rs. 180
Total satisfaction derived (TS) = Rs. 320
To calculate the consumer surplus, we need to find the difference between the total satisfaction derived by the consumer and the price paid for the commodity.
Consumer Surplus (CS) = Total satisfaction derived (TS) - Price of commodity (P)
Substituting the given values, we get:
CS = 320 - 180
CS = Rs. 140
Therefore, the consumer surplus is Rs. 140.
Explanation
Consumer surplus is a measure of the difference between the total satisfaction derived by a consumer from consuming a commodity and the price paid for it. In this case, the total satisfaction derived by the consumer is Rs. 320, and the price paid for the commodity is Rs. 180. The consumer surplus is calculated as the difference between these two values, which is Rs. 140.
Consumer surplus is an important concept in economics as it helps in understanding the welfare of consumers in a market. A higher consumer surplus indicates that consumers are deriving more satisfaction from the goods or services they are consuming, and are willing to pay more for them. This, in turn, indicates that the market is functioning efficiently and is meeting the needs of consumers.
Given:
Price of commodity (P) = Rs. 180
Total satisfaction derived (TS) = Rs. 320
To calculate the consumer surplus, we need to find the difference between the total satisfaction derived by the consumer and the price paid for the commodity.
Consumer Surplus (CS) = Total satisfaction derived (TS) - Price of commodity (P)
Substituting the given values, we get:
CS = 320 - 180
CS = Rs. 140
Therefore, the consumer surplus is Rs. 140.
Explanation
Consumer surplus is a measure of the difference between the total satisfaction derived by a consumer from consuming a commodity and the price paid for it. In this case, the total satisfaction derived by the consumer is Rs. 320, and the price paid for the commodity is Rs. 180. The consumer surplus is calculated as the difference between these two values, which is Rs. 140.
Consumer surplus is an important concept in economics as it helps in understanding the welfare of consumers in a market. A higher consumer surplus indicates that consumers are deriving more satisfaction from the goods or services they are consuming, and are willing to pay more for them. This, in turn, indicates that the market is functioning efficiently and is meeting the needs of consumers.
Free Test
FREE
| Start Free Test |
Community Answer
The satisfaction which a consumer derives in the consumption of a comm...
Because consumer surplus = satisfaction derived - satisfaction amt paid = 320 - 180 = 140
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
The satisfaction which a consumer derives in the consumption of a commodity is equal to Rs. 320. The price of that commodity is Rs. 180. What will be his consumer surplus?a)180b)200c)140d)500Correct answer is option 'C'. Can you explain this answer?
Question Description
The satisfaction which a consumer derives in the consumption of a commodity is equal to Rs. 320. The price of that commodity is Rs. 180. What will be his consumer surplus?a)180b)200c)140d)500Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The satisfaction which a consumer derives in the consumption of a commodity is equal to Rs. 320. The price of that commodity is Rs. 180. What will be his consumer surplus?a)180b)200c)140d)500Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The satisfaction which a consumer derives in the consumption of a commodity is equal to Rs. 320. The price of that commodity is Rs. 180. What will be his consumer surplus?a)180b)200c)140d)500Correct answer is option 'C'. Can you explain this answer?.
The satisfaction which a consumer derives in the consumption of a commodity is equal to Rs. 320. The price of that commodity is Rs. 180. What will be his consumer surplus?a)180b)200c)140d)500Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The satisfaction which a consumer derives in the consumption of a commodity is equal to Rs. 320. The price of that commodity is Rs. 180. What will be his consumer surplus?a)180b)200c)140d)500Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The satisfaction which a consumer derives in the consumption of a commodity is equal to Rs. 320. The price of that commodity is Rs. 180. What will be his consumer surplus?a)180b)200c)140d)500Correct answer is option 'C'. Can you explain this answer?.
Solutions for The satisfaction which a consumer derives in the consumption of a commodity is equal to Rs. 320. The price of that commodity is Rs. 180. What will be his consumer surplus?a)180b)200c)140d)500Correct answer is option 'C'. Can you explain this answer? 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 The satisfaction which a consumer derives in the consumption of a commodity is equal to Rs. 320. The price of that commodity is Rs. 180. What will be his consumer surplus?a)180b)200c)140d)500Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The satisfaction which a consumer derives in the consumption of a commodity is equal to Rs. 320. The price of that commodity is Rs. 180. What will be his consumer surplus?a)180b)200c)140d)500Correct answer is option 'C'. Can you explain this answer?, a detailed solution for The satisfaction which a consumer derives in the consumption of a commodity is equal to Rs. 320. The price of that commodity is Rs. 180. What will be his consumer surplus?a)180b)200c)140d)500Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of The satisfaction which a consumer derives in the consumption of a commodity is equal to Rs. 320. The price of that commodity is Rs. 180. What will be his consumer surplus?a)180b)200c)140d)500Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The satisfaction which a consumer derives in the consumption of a commodity is equal to Rs. 320. The price of that commodity is Rs. 180. What will be his consumer surplus?a)180b)200c)140d)500Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup