Consumer surplus refers to the difference between the maximum amount a consumer is willing to pay for a good or service and the actual price they pay. In other words, it is the additional benefit or value that consumers receive from purchasing a product at a price lower than what they were willing to pay. Choice (D) is the most accurate definition of consumer surplus.

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Consumer Surplus Is

Question 24

Multiple Choice

Consumer surplus is:

A) the difference between quantity demanded and quantity supplied.
B) the sum of quantity demanded and quantity supplied.
C) the ratio of the price of a good to the proportion of income spent on the good.
D) the difference between the most a consumer would be willing to pay for a quantity of a good and what a consumer actually has to pay.
E) the difference between the income and expenditure of a consumer in the current time period.

Correct Answer: