What does consumer surplus measure
A)the amount of a product a consumer can buy at a price below equilibrium price
B)the difference between the amount a consumer has to pay and the amount the consumer would be willing to pay
C)the number of consumers who are excluded from a market because of scarcity
D)how much a buyer values a good

Question

Quizplus · Accepted Answer

Consumer surplus measures the difference between the amount a consumer is willing to pay for a good or service and the price they actually pay. This is calculated by subtracting the price paid from the maximum price the consumer would be willing to pay. Option A is incorrect as consumer surplus is not related to equilibrium price. Option C is incorrect as it refers to scarcity which is not related to consumer surplus. Option D is incorrect as it describes the concept of willingness to pay, which is a factor used in the calculation of consumer surplus.

What Does Consumer Surplus Measure