"Consumer surplus" is
A)the difference between the price customers expect to pay, and the price they would have been willing to pay.
B)the total of all the differences between the price each customer actually pays and the maximum price they would have been willing to pay, all other things being equal.
C)the difference between the costs incurred in serving customers, and the revenue that they generate.
D)the amount of extra product consumers buy because of the difference between the normal price and a special offer price.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price that a customer is willing to pay for a product or service and the actual price they pay. It is the measure of consumer satisfaction or benefit from a transaction. Therefore, option B is the best choice as it defines consumer surplus accurately. The other options are incorrect as they refer to different economic concepts.

"Consumer Surplus" Is