Which best describes consumer surplus?
A)the price consumers are willing to pay for a unit
B)the cost of providing a unit
C)the profits made by a firm
D)the difference between the price a consumer pays for an item and the price he/she is willing to pay for it

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. It represents the benefit or surplus enjoyment consumers receive when they pay less than what they were prepared to pay.

Which Best Describes Consumer Surplus