The difference between the maximum price the consumer is willing to pay and the price the consumer actually pays for a product is referred to as:

Question

The difference between the maximum price the consumer is willing to pay and the price the consumer actually pays for a product is referred to as:​

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a customer is willing to pay for a product and the actual price they pay. It represents the benefit or surplus that the consumer receives from a transaction. Market surplus refers to the total benefit or surplus received in the market as a whole, while producer surplus is the difference between the price a producer receives and the minimum price they would be willing to accept for a product. Market shortage refers to a situation where demand exceeds supply.

The Difference Between the Maximum Price the Consumer Is Willing