Consumer surplus for an individual buyer is equal to the:
A)consumer's willingness to pay for the good minus the marginal cost of producing the good.
B)price of the good minus the marginal cost of producing the good.
C)consumer's willingness to pay for the good minus the price paid for the good.
D)marginal cost of the good minus the consumer's willingness to pay for the good.

Question

Quizplus · Accepted Answer

Consumer surplus measures the difference between what a consumer is willing to pay for a good/service (i.e. their reservation price) and the price they actually paid. So, Consumer surplus for an individual buyer is equal to the consumer's willingness to pay for the good minus the price paid for the good.

Consumer Surplus for an Individual Buyer Is Equal to The