Consumer surplus is the difference between the total benefit a consumer receives from a product and the total amount the consumer spends on the product. Therefore, option A is the correct answer. B, C, D, and E are incorrect as they do not fully capture the definition of consumer surplus.

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Consumer Surplus

Question 6

Multiple Choice

Consumer surplus:

A) is the difference between a product's total benefit and the total expenditure on the product
B) equals the total benefit that consumers derive from consumption of a product
C) is always less than the total expenditure on the product
D) is always more than the total expenditure on the product
E) is always equal to the total expenditure on the product

Correct Answer: