Consumer surplus represents
A) the marginal value that consumers place on the last unit consumed of a good.
B) the value that consumers place on the last unit consumed of a good.
C) the quantity consumed in excess of the allocatively efficient amount.
D) the total value that consumers place on the quantity consumed of some good.
E) 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.

Question

Quizplus · Accepted Answer

Consumer surplus is 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. It reflects the benefit that consumers receive from consuming a good or service beyond what they pay for it. Therefore, the best choice is E.

Consumer Surplus Represents