When consumers would have been willing to pay higher prices at various quantities consumed than the market clearing price, the differences are called
A) consumer surplus.
B) scarcity.
C) opportunity cost.
D) producer surplus.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a good or service and what they actually pay (which is the market clearing price). Therefore, when consumers are willing to pay higher prices than the market price, the difference between those prices represents consumer surplus.

When Consumers Would Have Been Willing to Pay Higher Prices