The difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays is called
A) utility.
B) consumer surplus.
C) consumer demand.
D) market failure.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a product and what they actually pay. It represents the benefit or surplus value that the consumer receives from purchasing the product at a lower price. Utility refers to the total satisfaction or benefit a consumer receives from consuming a product, while consumer demand refers to the quantity of a product that consumers are willing and able to buy at a certain price. Market failure refers to a situation where the market fails to efficiently allocate resources or achieve a socially optimal outcome.

The Difference Between the Maximum Price a Consumer Is Willing