The difference between the demand curve and the market price is called

Question

Quizplus · Accepted Answer

The difference between the demand curve and the market price is the amount of consumer surplus. Consumer surplus is the extra value that consumers receive from a good or service over what they paid for it, and is the area between the demand curve and the market price up to the quantity consumed. Therefore, consumer surplus is the best choice to describe this difference. Deadweight loss is a loss in economic efficiency that occurs when the equilibrium market quantity is not reached, profit is the difference between total revenue and total costs, and producer surplus is the extra value that producers receive from a good or service over what it cost to produce, which is the area between the market price and the supply curve up to the quantity produced. These concepts are not directly related to the difference between the demand curve and the market price.

The Difference Between the Demand Curve and the Market Price