Consumer surplus is:
A) the amount of purchasing power a consumer receives when the price of a good falls.
B) the amount of money that exactly compensates a consumer for a change in circumstances.
C) the net benefit a consumer receives from participating in the market for some good.
D) negative whenever the price of a good increases.

Question

Quizplus · Accepted Answer

Consumer surplus refers to the difference between the maximum amount a consumer is willing to pay for a good and the actual price paid. It represents the net benefit a consumer receives from participating in the market for some good. Options A, B, and D do not accurately describe consumer surplus.

Consumer Surplus Is