The difference between the maximum amount buyers are willing to pay for a given quantity of a good and the amount actually paid is called
A) deadweight loss.
B) deadweight gain.
C) producer surplus.
D) consumer surplus.

Question

Quizplus · Accepted Answer

The difference between the maximum amount buyers are willing to pay for a given quantity of a good and the amount actually paid is known as consumer surplus. This is represented by the shaded region in the graph. Therefore, option D is the correct answer.

The Difference Between the Maximum Amount Buyers Are Willing to Pay