Consumer surplus applies only to market demand, not individual demand.

Question

Quizplus · Accepted Answer

Consumer surplus can apply to both market demand and individual demand. Market demand refers to the total demand for a product from all consumers, while individual demand refers to the demand of a specific consumer. Consumer surplus is the difference between the maximum amount a consumer is willing to pay for a product and the actual price they pay. This concept can be applied to both market demand and individual demand.

Consumer Surplus Applies Only to Market Demand, Not Individual Demand