The difference between the maximum amount a person is willing to pay for a given quantity of a good and the amount actually paid for that quantity is known as _____
A)producer surplus.
B)the substitution effect.
C)price discrimination.
D)the income effect.
E)consumer surplus.

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 represents the benefit or surplus enjoyment consumers receive because they pay less than what they are prepared to pay.

The Difference Between the Maximum Amount a Person Is Willing