The difference between the maximum amount a person is willing to pay for a given quantity of a good and the amount actually paid for that quantity is called
A)producer surplus
B)the substitution effect
C)price discrimination
D)the income effect
E)consumer surplus

Question

Quizplus · Accepted Answer

The difference between the maximum amount a person is willing to pay and the actual price paid is called consumer surplus. Consumer surplus is a measure of the economic welfare that consumers obtain from consuming a certain amount of a given good or service. It represents the "extra" benefit or utility that consumers receive beyond what they had to pay for the good or service.

The Difference Between the Maximum Amount a Person Is Willing