The difference between what a consumer is willing to pay for a product and what she actually pays when buying it is known as
A)consumer surplus.
B)the exchange rate.
C)the inflation rate.
D)price discrimination.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay (the maximum price they are willing to pay) and the actual price they pay for a product. It represents the benefit that the consumer receives from purchasing the good at a lower price than they are willing to pay. The other options (exchange rate, inflation rate, price discrimination) are not related to this concept.

The Difference Between What a Consumer Is Willing to Pay