Consumer surplus:
A) is minimized in market equilibrium.
B) measures the value between the actual selling price of a product and the price at which sellers are willing to sell the product.
C) measures the value between the price consumers are willing to pay for a product and the price they actually pay.
D) measures the price at which sellers extract excess profits from consumers.

Question

Quizplus · Accepted Answer

Consumer surplus measures the difference between the maximum price a consumer is willing to pay for a product and the actual price they pay. Therefore, it is the value consumers receive above and beyond what they have to pay, which is represented by the price they actually pay. It is not minimized in market equilibrium, nor does it measure excess profits extracted by sellers.

Consumer Surplus