How is the benefit received by buyers in the market measured
A)by the demand curve
B)by consumer surplus
C)by the amount buyers are willing to pay for the good
D)by the equilibrium price

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the amount that buyers are willing to pay for a good and the actual price they pay. It is a measure of the benefit received by buyers in the market. The demand curve shows the relationship between the quantity of a good that buyers are willing to purchase and the price of the good. The amount buyers are willing to pay for the good is part of the calculation for consumer surplus, but it is not the sole measure of benefit received by buyers. The equilibrium price is the price at which the quantity of a good supplied is equal to the quantity of the good demanded and is determined by the intersection of the supply and demand curves. While it is an important concept in understanding market dynamics, it is not a measure of the benefit received by buyers in the market.

How Is the Benefit Received by Buyers in the Market