Consumers' surplus is the difference between the price
A) sellers receive for a good and the maximum price they would have paid for the good.
B) sellers receive for a good and the minimum price for which they could have sold the good.
C) buyers pay for a good and the maximum price they would have paid for the good.
D) buyers pay for a good and the minimum price for which they would have sold the good.

Question

Quizplus · Accepted Answer

Consumers' surplus is the difference between the amount that consumers are willing to pay for a good and the actual price that they pay. Therefore, it is the difference between the maximum price they would have paid and the actual price. Option C fits this definition while the other options describe different concepts.

Consumers' Surplus Is the Difference Between the Price