Exercises · Q8
Q.A consumer's willingness to pay for successive units of a good is Rs. 15, 12, 9, 6, and 3 for units 1 to 5 respectively. If the market price is Rs. 6 per unit, find the number of units he buys and his Consumer's Surplus.
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✓ Free question
Checking each unit against the market price of Rs. 6: unit 1 (Rs. 15 ≥ 6, buy), unit 2 (Rs. 12 ≥ 6, buy), unit 3 (Rs. 9 ≥ 6, buy), unit 4 (Rs. 6 ≥ 6, buy — exactly at the margin), unit 5 (Rs. 3 < 6, do not buy). So 4 units are purchased.
Total willingness to pay for these 4 units: . Actual payment at Rs. 6 per unit: .
Checked unit by unit: surplus is , , , ; summing gives , matching the aggregate calculation.
✓Final answer
The consumer buys 4 units; Consumer's Surplus = Rs. 18.
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