Consumer surplus is
A)the result of a shortage.
B)the result of a surplus.
C)a measure of the quantity traded by consumers.
D)a measure of the gains from trade to consumers.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay. It measures the gains from trade to consumers by quantifying the difference between the maximum price consumers are willing to pay for a good and the actual market price they pay. Therefore, the best choice is D.

Consumer Surplus Is