Consumer surplus is measured as which of the following?
A)The excess of sales price over manufacturing cost
B)The amount a consumer pays for a good minus search costs
C)The perceived manufacturing cost by a consumer as a percentage of sales price
D)The perceived benefit of a product per unit consumed minus the product's monetary price
E)The loss incurred by a firm selling at a price below its manufacturing cost

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a good (i.e., perceived benefit) and the price they actually pay for it. It is calculated as the monetary value of the benefit that consumers receive from a good minus the price they pay for it. Therefore, option D is the correct choice as it represents the difference between the perceived benefit and the monetary price. The other options do not accurately represent the concept of consumer surplus.

Consumer Surplus Is Measured as Which of the Following