The difference between the price the consumer is willing to pay for a good or service and what he would have to pay for that unit is called:

Question

Quizplus · Accepted Answer

The difference between the price the consumer is willing to pay for a good or service and what he would have to pay for that unit is called consumer surplus. It represents the benefit that consumers receive from paying less than their maximum willingness to pay for a product. Total gains from trading, gain in producer surplus, and total surplus refer to different measures of welfare in a market, but they do not capture the specific benefit to consumers from paying a lower price than their valuation.

The Difference Between the Price the Consumer Is Willing to Pay