Which is an example of consumer surplus AMohamed doesnt buy

Which is an example of consumer? surplus?

A.Mohamed? doesn’t buy a book because it cost 60 dirhams and he was only willing to pay 50 dirhams.

B.Hamad gets a haircut for 25? dirhams, the maximum price he was willing to pay.

C.Amna pays her 300 dirham phone bill every month with a 500 dirham bill.

D.Miriam was willing to pay? 25,000 dirhams for a car but was able to buy it for? 20,000 dirhams.

Solution

Answer : Option number D is correct.

Because here Miriam is ready to pay 25,000 dirhams but Miriam actually pays 20,000 dirhams for a car.

Consumer Surplus = Willing payment amount for a product - Actual payment amount which is paid by the consumer.

In case of option D, Consumer Surplus = 25,000 dirhams - 20,000 dirhams = 5,000 dirhams.

Therefore, here it is clear that the option D is a consumer surplus example.