Which of the following statements correctly differentiates between consumer surplus and net benefits?
A) Consumer surplus at different levels of consumption can be calculated mathematically, whereas net benefits at different levels of consumption cannot be estimated.
B) Consumer surplus at different levels of consumption cannot be estimated, whereas net benefits at different levels of consumption can be calculated mathematically.
C) Consumer surplus measures the difference between the willingness to pay for a good and the price paid for the good, whereas net benefits measure the overall satisfaction gained from the consumption of a good.
D) Consumer surplus measures the overall satisfaction gained from the consumption of a good, whereas net benefits measure the difference between the willingness to pay for a good and the price paid for the good.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay, reflecting the economic benefit to consumers. Net benefits, on the other hand, encompass the total benefits (including consumer surplus) minus any costs associated with the consumption of the good, thus providing a broader measure of economic welfare.

Which of the Following Statements Correctly Differentiates Between Consumer Surplus