Consumer surplus is defined as:
A)The difference between the discounted amount and the original amount purchased of a good.
B)The difference between the maximum amount a consumer is willing to pay for a good and the amount he or she must actually pay when purchasing
C)The difference between the cost of producing a good and its purchase price.
D)The amount of the good purchased by a consumer over and above the minimum amount that the customer wanted of the good.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum amount a consumer is willing to pay for a good and the actual amount they pay. It represents the extra benefit or value that the consumer receives from the good, above and beyond what they had to pay for it. Option A is incorrect because it refers to discounted amount and original amount, which is not relevant to consumer surplus. Option C is incorrect because it refers to the cost of producing a good, which is not related to the concept of consumer surplus. Option D is incorrect because it refers to the minimum amount wanted by the customer, which is not relevant to consumer surplus. Consumer surplus is the difference between what a consumer is willing to pay for a good or service and what they actually end up paying. It represents the benefit or value that the consumer receives from the purchase, beyond what they had to give up in actual monetary terms. Therefore, the correct option is B.

Consumer Surplus Is Defined As