The difference between the highest amount a buyer would be willing to pay for a good and the amount she actually pays for it is
A) producers' surplus.
B) consumers' surplus.
C) marginal revenue.
D) marginal utility.

Question

Quizplus · Accepted Answer

The difference between the highest amount a buyer would be willing to pay for a good and the amount they actually pay is known as consumers' surplus. Producers' surplus is the difference between the amount a producer receives and the minimum amount they would be willing to accept for that good. Marginal revenue is the change in total revenue resulting from a one-unit increase in sales, and marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good.

The Difference Between the Highest Amount a Buyer Would Be