A buyer values a new Honda at Rs20,000 but manages to purchase it for Rs18,000. What is the amount of her consumer surplus?

Choose the correct answer

Explanation

Consumer surplus is the difference between what a buyer is willing to pay and the price actually paid. Here, the surplus equals Rs20,000 minus Rs18,000, resulting in Rs2,000.

A buyer values a new Honda at Rs20,000 but manages t… — Surplus | PakQuizHub