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.

Question

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.

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay. It represents the satisfaction that consumers derive from a transaction, and is measured as the area above the market price and below the demand curve. Therefore, option D is the correct answer.

Consumer Surplus Is:​

Consumer Surplus Is: