Consumer surplus arises in a market because
A) the quantity supplied is greater than quantity demanded at the current market price.
B) the quantity demanded is greater than quantity supplied at the current market price.
C) the market price is below what some consumers are willing to pay for the product.
D) the market price is higher than what some consumers are willing to pay for the product.

Question

Quizplus · Accepted Answer

Consumer surplus arises when the market price is below what some consumers are willing to pay for the product. This means that some consumers are able to purchase the product at a price lower than their maximum willingness to pay, resulting in a surplus benefit or value to them. It is the difference between the price that consumers are willing to pay and the actual market price, up to the point where quantity demanded equals quantity supplied.

Consumer Surplus Arises in a Market Because