Consumer surplus is
A)the amount by which quantity supplied exceeds quantity demanded at the current market price
B)the amount by which quantity demanded exceeds quantity supplied at the current market price
C)the change in total utility derived from a one-unit change in the consumption of a good
D)the difference between the price of the good paid by the consumer and the costs of production to the seller
E)the difference between the maximum amount that a consumer is willing to pay for a given amount of a good and the amount that the consumer actually pays

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum amount that a consumer is willing to pay for a given amount of a good and the amount that the consumer actually pays. Therefore, option E is the best choice. Options A and B describe situations where there is either an excess supply or an excess demand for a good, but these do not relate directly to consumer surplus. Option C describes the concept of marginal utility, which is related to but not the same as consumer surplus. Option D describes the concept of producer surplus, which is also different from consumer surplus.

Consumer Surplus Is