A consumer surplus can be best described as
A) what the consumer has "left over" after a purchase.
B) how much extra a consumer has to pay for a product.
C) value for the money.
D) the premium charged for a quality product.

Question

Quizplus · Accepted Answer

The value of a product to an average consumer is V; the average price that the firm can charge a consumer for that product given competitive pressures and its ability to segment the market is P. The consumer surplus per unit is equal to V - P (another way of thinking of the consumer surplus is as "value for the money"; the greater the consumer surplus, the greater the value for the money the consumer gets).

A Consumer Surplus Can Be Best Described as