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Give an example of some consumer surplus you have received this month. Then illustrate that consumer...

Give an example of some consumer surplus you have received this month. Then illustrate that consumer surplus in a diagram.

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Answer #1

The one example of getting the consumer surplus is that when I purchased new Samsun Galaxy Mobile phone. It had the market price of $650 in festive season discount, though I was willing to pay $750 for this mobile phone. So, with the purchase of this mobile handset, I earned some consumer surplus.

Amount of consumer surplus received = Maximum price willing to be paid - market equilibrium price

Amount of consumer surplus received = 750-650

Amount of consumer surplus received = $100

It is shown in the following diagram.

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