What is consumer surplus?
A)The maximum willingness to pay for a unit of a product
B)The price that an individual pays in equilibrium for a product
C)The difference between how much an individual is willing to pay for a product and how much he ends up paying
D)How many units are traded in equilibrium

Question

​What is consumer surplus?
A)​The maximum willingness to pay for a unit of a product
B)The price that an individual pays in equilibrium for a product
C)The difference between how much an individual is willing to pay for a product and how much he ends up paying
D)​How many units are traded in equilibrium

Quizplus · Accepted Answer

Consumer surplus is the difference between how much a consumer is willing to pay for a product and how much they actually end up paying for it. It represents the extra satisfaction or value that the consumer receives from the product beyond what they paid for it. A and B do not represent the definition of consumer surplus, and D refers to the quantity of units traded in equilibrium, which is not related to consumer surplus.

​What Is Consumer Surplus

What Is Consumer Surplus