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
- ARs 5000
- BRs 12500
- CRs 7500
- DRs 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: