Consumer surplus is defined as:
A) the quantities of a good or service that bring equal utility to the consumer.
B) the quantity of a good or service that is utility maximizing for the consumer.
C) the difference between what a consumer is willing to pay and what he or she actually pays for a good or service.
D) the difference between the market price and the marginal cost of producing a good or service.
E) none of the above.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and the actual price they pay. It represents the value that a consumer gains from a purchase. Therefore, it is not related to utility maximizing or equal utility, and it is also not connected to the cost of producing a good or service.

Consumer Surplus Is Defined As