One way of thinking of consumer surplus might be described as:
A)the total value of the sum of the difference of all consumers' willingness to pay for an item relative to the actual cost of the item in the market.
B)the excess amount that consumers earn relative to the poverty line.
C)the level of satisfaction that consumers reach from consuming an item.
D)the excess of consumer demand relative to supply.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the price a consumer is willing to pay for a good or service and the actual price they pay in the market. It is the added benefit or value consumers receive from purchasing a product at a lower price than they were willing to pay. This can be calculated by finding the area below the demand curve and above the market price, which represents the amount of value gained by consumers. Consumer surplus is the difference between the total amount that consumers are willing to pay for a good or service and the actual price that they pay in the market. It represents the extra value or benefit that consumers receive from purchasing a good or service at a price lower than their willingness to pay. Therefore, the answer is A)the total value of the sum of the difference of all consumers' willingness to pay for an item relative to the actual cost of the item in the market.

One Way of Thinking of Consumer Surplus Might Be Described