JAMB Economics 2019 Paper

Concept:Consumer surplus is the extra satisfaction a consumer gets when paying less than the maximum price they were willing to pay.Explanation:Consumer surplus is the difference between the total amount a consumer is willing to pay and the total amount actually paid.In the diagram, the area below the demand curve, $TUX$, shows the total amount the consumer is willing to spend.The actual amount paid is the total expenditure, represented by the area $TUVW$.So, consumer surplus is:$$TUX - TUVW = VWX$$Thus, consumer surplus is the area above the price line and below the demand curve.Answer:A. The area $VWX$