Consumer surplus measures
A)marginal utility.
B)total utility.
C)the cumulative difference between real and nominal prices.
D)the cumulative difference between price and maximum willingness to pay.

Question

Quizplus · Accepted Answer

Consumer surplus is defined as the difference between the price a consumer is willing to pay for a good or service and the actual price they pay. In other words, it measures the difference between the maximum amount a consumer is willing to pay and the actual amount they pay, which is option D.

Consumer Surplus Measures