A buyer's consumer surplus on a unit of a good is its value to that buyer minus the market price.

Question

Quizplus · Accepted Answer

This is the correct definition of consumer surplus. Consumer surplus is the difference between the maximum amount a buyer is willing to pay for a unit of a good and the actual price paid for that unit. It measures the economic benefit that the buyer receives from consuming a good at a price lower than what they were willing to pay.

A Buyer's Consumer Surplus on a Unit of a Good