Consumer surplus:
A) is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price.
B) the difference between the maximum prices consumers are willing to pay for a product and the minimum prices producers are willing to accept.
C) the difference between the minimum prices producers are willing to accept for a product and the higher equilibrium price.
D) rises as equilibrium price rises.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay for a good or service (their maximum price) and the market price they actually pay. When the market price is lower than what consumers are willing to pay, consumer surplus exists because consumers are getting more value than the cost.

Consumer Surplus