Consumer surplus refers to the difference between the maximum amount a consumer is willing to pay for a good and the actual price paid. It represents the net benefit a consumer receives from participating in the market for some good. Options A, B, and D do not accurately describe consumer surplus.

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Consumer Surplus Is

Question 6

Multiple Choice

Consumer surplus is:

A) the amount of purchasing power a consumer receives when the price of a good falls.
B) the amount of money that exactly compensates a consumer for a change in circumstances.
C) the net benefit a consumer receives from participating in the market for some good.
D) negative whenever the price of a good increases.

Correct Answer: