The difference between the amount a consumer is willing to pay and the amount they actually must pay for a good is called the:
A)price elasticity of demand.
B)substitution effect.
C)consumer surplus.
D)income elasticity of demand.

Question

The difference between the amount a consumer is willing to pay and the amount they actually must pay for a good is called the:
A)​price elasticity of demand.
B)​substitution effect.
C)​consumer surplus.
D)​income elasticity of demand.

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum amount that a consumer is willing to pay for a good and the actual price they pay for it. It represents the benefit or surplus that the consumer receives from the transaction.

The Difference Between the Amount a Consumer Is Willing to Pay