The buyer's surplus is:
A) a source of customer sensitivity
B) the difference between a product's value and its market price
C) the difference between the cost to produce the product and its market price
D) a firm's total economic contribution

Question

Quizplus · Accepted Answer

The buyer's surplus is the difference between the value a buyer places on a product and the actual price they pay for it in the market. This concept reflects the economic benefit or surplus that consumers receive when they are able to purchase a product for less than what they were willing to pay.

The Buyer's Surplus Is