Consumer surplus is
A)equivalent to value in use.
B)equivalent to value in exchange.
C)the difference between total expenditure and what consumers have to pay per unit.
D)total expenditure divided by the price per unit.
E)the difference between what consumers would be willing to pay and what they have to pay.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay for a product or service and what they actually have to pay for it. It represents the benefits that consumers receive over and above the price that they pay. Therefore, the correct choice is E - the difference between what consumers would be willing to pay and what they have to pay.

Consumer Surplus Is