What is consumers' willingness to pay for a good minus the amount they actually pay for it
A)consumer surplus
B)producer surplus
C)the tax per unit
D)the subsidy per unit

Question

Quizplus · Accepted Answer

Consumers' willingness to pay for a good minus the amount they actually pay for it is known as consumer surplus. It represents the additional satisfaction or benefit they obtain from being able to purchase the good at a lower price than their maximum willingness to pay. Producer surplus, on the other hand, is the difference between the price a producer receives for a good and the minimum price they would be willing to accept to produce that quantity of the good. Tax per unit and subsidy per unit are not applicable in this context, as they refer to the additional costs or benefits that the government imposes or provides to producers or consumers, respectively.

What Is Consumers' Willingness to Pay for a Good Minus