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Priya likes a wedding gown so much that she was willing to pay even Rs 30000 for it. Luckily she finds the same gown marked at Rs 25000 at a local store. The store is further offering a 30% discount on the gown. Priya's consumer surplus is

  1. A
    Rs 5000
  2. B
    Rs 12500
  3. C
    Rs 7500
  4. D
    Rs 25000

Solution & Step-by-step Explanation

Consumer surplus is calculated as the difference between the maximum price a consumer is willing to pay and the actual price they pay. Maximum price Priya is willing to pay = Marked price of the gown = Discount offered = of Actual price paid by Priya = Now, calculate the Consumer Surplus:

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Priya likes a wedding gown so much that she was willing to pay even Rs 30000 for it. Luckily she finds the same gown marked at Rs 25000 at a local store. The store is further offering a 30% discount on the gown. Priya's consumer surplus is
A
Rs 5000
B
Rs 12500
C
Rs 7500
D
Rs 25000

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