The difference between what consumers are willing and able to pay for a particular quantity and the market price is:

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the highest price a consumer is willing to pay for a good or service and the market price they actually pay. It represents the benefit or surplus value that a consumer receives from purchasing a good at a price lower than what they are willing to pay. Producer surplus, on the other hand, is the difference between the market price and the lowest price a producer is willing to accept for a product, and represents the benefit or surplus value that a producer receives from selling a good at a price higher than the lowest price they are willing to accept. Global surplus and market surplus are not commonly used terms in economics.

The Difference Between What Consumers Are Willing and Able to Pay