The difference between the maximum price a consumer is willing to pay for a given quantity of a good and its market price is:
A) producer shortage.
B) consumer shortage.
C) producer surplus.
D) consumer surplus.

Question

Quizplus · Accepted Answer

The difference between the maximum price a consumer is willing to pay and the market price is the consumer surplus. It represents the value that consumers receive from purchasing a good at a price lower than what they are willing to pay. The other options (producer shortage, consumer shortage, and producer surplus) do not accurately describe this concept.

The Difference Between the Maximum Price a Consumer Is Willing