New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Consumer surplus is highest in the case of

    ________.
    A Durable goods Correct Answer Incorrect Answer
    B Luxuries Correct Answer Incorrect Answer
    C Comforts Correct Answer Incorrect Answer
    D Necessities Correct Answer Incorrect Answer

    Solution

    Consumer surplus, the difference between what consumers are willing to pay and what they actually pay, is highest for necessities, as these goods have a high perceived value.

    Practice Next

    Relevant for Exams: