The difference between the ________ for a good and the ________ is called consumer surplus.
A)highest price a consumer is willing to pay; lowest price a consumer is willing to pay
B)lowest price a consumer is willing to pay; price the consumer actually pays
C)highest price a consumer is willing to pay; price the consumer actually pays
D)price the consumer actually pays; actual cost to the producer

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what the consumer is willing to pay (i.e. highest price) and what they actually pay (i.e. the market price). Therefore, option C correctly identifies these two values as the components of consumer surplus. Option A is incorrect because it lists the lowest price a consumer is willing to pay, which is not relevant to consumer surplus. Option B is incorrect because it lists the price paid as the lowest price a consumer is willing to pay, which is not accurate. Option D is incorrect because it refers to the actual cost to the producer, which is not relevant to the concept of consumer surplus.

The Difference Between the ________ for a Good and the ________

The Difference Between the for a Good and the