Which of the following is the definition of consumer surplus?
A)the difference between the value that consumers place on a good and the payment they make to buy the good,summed over the quantity consumed
B)the total value that consumers place on the quantity consumed of some good
C)the quantity consumed in excess of the allocatively efficient amount
D)the value that consumers place on the last unit consumed of a good
E)the marginal value that consumers place on the last unit consumed of a good

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the total value that consumers place on a good and the actual price they pay for it. It is calculated by finding the area between the demand curve and the price line, up to the quantity consumed. Therefore, the correct definition is A, as it describes the calculation of consumer surplus. The other options (B, C, D, and E) do not correctly define consumer surplus.

Which of the Following Is the Definition of Consumer Surplus