The difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays is
A) allocative efficiency.
B) productive efficiency.
C) the consumer surplus.
D) the producer surplus.

Question

Quizplus · Accepted Answer

The difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays is known as consumer surplus. This represents the benefit that consumers receive from purchasing the product at a price lower than their maximum willingness to pay. Therefore, the correct choice is C.

The Difference Between the Maximum Price a Consumer Is Willing