The benefit to buyers of participating in a market is measured by
A)the price elasticity of demand.
B)consumer surplus.
C)the amount buyers are willing to pay for the good.
D)the equilibrium price.

Question

Quizplus · Accepted Answer

Consumer surplus measures the benefit that buyers receive from participating in a market. It is the difference between the maximum price buyers are willing to pay for a good and the actual price they pay in the market. Therefore, B is the correct answer. A, C, and D may be related to the benefits buyers receive from participating in a market, but they do not measure this benefit specifically.

The Benefit to Buyers of Participating in a Market Is