The difference between what consumers would be willing to pay for a product as reﬂected by the market demand curve and what they actually pay, as reﬂected by the market price is:
A) consumer surplus.
B) equal to the total utility of the good.
C) the price elasticity of demand.
D) the difference between the buying price and the selling price.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually do pay (the market price).

The Difference Between What Consumers Would Be Willing to Pay