The difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays is called:
A) Utility
B) Consumer Surplus
C) Consumer Demand
D) Market failure

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays. Utility refers to the satisfaction a consumer derives from a product, consumer demand refers to the quantity of a product that consumers are willing and able to purchase at various prices, and market failure is a situation where the market fails to efficiently allocate resources. Therefore, the correct answer is B.

The Difference Between the Maximum Price a Consumer Is Willing