The table below show the marginal utility derived at different level by a consumer
Quantity Marginal Price in
Purchased Utility (Utls) Rs. per unit
1 18 8
2 15 8
3 13 8
4 10 8
5 8 8
answer the following question on the basis of above data.
What is the consumer surplus when the consumer purchases 1 unit.

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Solution

The correct option is A 10
Consumer surplus = Sum of utility of all units no unit X unit price.
Consumer surplus of 1 unit = 18 - 8 (1) = 10.

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