The difference between the value of a good to consumers and its price is known as:
A)demand.
B)marginal utility.
C)total utility.
D)consumer surplus.

Question

The difference between the value of a good to consumers and its price is known as:
A)​demand.
B)​marginal utility.
C)​total utility.
D)​consumer surplus.

Quizplus · Accepted Answer

Consumer surplus is the difference between the price a consumer is willing to pay for a good and the actual price they pay. It represents the value that the consumer receives in excess of what they actually paid for the good. This surplus arises when the consumer's perception of the value of the good is higher than the actual price they have to pay for it.

The Difference Between the Value of a Good to Consumers