Consumer surplus is:
A)the area underneath the demand curve.
B)the total utility derived from consuming a good.
C)the marginal utility of the last unit consumed multiplied by the number of units consumed.
D)the difference between what consumers are willing to pay and what they are required to pay for a good.
E)the dollar amount spent acquiring a good.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay for a good and what they actually have to pay for it. It represents the value that consumers obtain from a good but do not have to pay for, which is measured by the area between the demand curve and the market price. Choices A, B, C, and E do not accurately define consumer surplus.

Consumer Surplus Is