Consumer surplus is defined as the
A) difference between the willingness to pay for a good and the willingness to sell it.
B) total revenue earned from producing and selling some good.
C) difference between the willingness to pay for a good and the price paid to get it.
D) quantity of units that consumers want to buy at the market price.
E) difference between the price the seller receives and the willingness to sell it.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the highest price a consumer is willing to pay for a good and the actual price paid. It represents the benefit or satisfaction that consumers receive from purchasing a good at a lower price than they were willing to pay. Option C precisely defines consumer surplus. Option A refers to producer surplus, while option B is the total revenue earned from a good. Option D refers to the market demand, and option E refers to producer revenue.

Consumer Surplus Is Defined as the