Consumer surplus is
A)the same as Karl Marx's notion of surplus value.
B)the same as total utility.
C)the sum of the extra value placed on each unit of a commodity above the market price paid for each.
D)the total value that consumers place on their purchases.
E)the marginal value that consumers place on their purchases.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the total value or willingness to pay that consumers place on a good and the market price they actually pay. Therefore, it represents the sum of the extra value placed on each unit of a commodity above the market price paid for each. This is different from total utility (B), which is the satisfaction or happiness derived from consuming a good, and also different from the total value that consumers place on their purchases (D). Additionally, consumer surplus is not the same as Karl Marx's notion of surplus value (A), which refers to the difference between the value that workers produce and the wages they receive. Finally, consumer surplus is not the same as marginal value (E), which refers to the extra value that consumers place on one additional unit of a good.

Consumer Surplus Is