Consumer surplus
A) is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price.
B) is the difference between the maximum prices consumers are willing to pay for a product and the minimum prices producers are willing to accept.
C) is the difference between the minimum prices producers are willing to accept for a product and the higher equilibrium price.
D) rises as equilibrium price rises.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price consumers are willing to pay for a product and the actual lower equilibrium price they pay. This represents the extra utility or benefit consumers receive because they pay less than what they were prepared to pay.

Consumer Surplus