What is meant by consumer surplus?
A)It is the total quantity of a good bought by a consumer divided by the price paid.
B)It is a measure of an individual consumer's utility from the consumption of a good.
C)It is the difference between a consumer's maximum willingness to pay and the price.
D)It is a measure of the total benefit to consumers from the purchase of a good.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and the actual price paid. It represents the benefit or surplus that the consumer receives from purchasing the good. Therefore, option C is the correct definition of consumer surplus.

What Is Meant by Consumer Surplus