What is consumer surplus
A)the quantity of a good consumers get free
B)the amount a consumer has to pay less the amount the consumer was willing to pay
C)the amount a consumer is willing to pay less the amount the consumer actually pays
D)the total value of a good to a consumer

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the amount a consumer is willing to pay for a good or service and the amount the consumer actually pays for it. In other words, it is the extra value that the consumer receives beyond what they had to pay. Option C matches this definition, making it the correct choice. Option A is incorrect because consumers generally do not receive goods for free, and if they do, it would not be considered consumer surplus. Option B is incorrect because it is the difference between the amount a consumer pays and the amount they were willing to pay, which does not take into account any additional value received. Option D is incorrect because while it starts out close to the true definition, it is not specific enough towards the consumer's value of the product.

What Is Consumer Surplus