Consumer surplus is equal to
A) marginal benefit minus price summed over the quantity consumed.
B) price minus marginal benefit summed over the quantity consumed.
C) marginal benefit summed over the quantity consumed.
D) price multiplied by the quantity consumed.
E) marginal benefit plus price summed over the quantity consumed.

Question

Quizplus · Accepted Answer

Consumer surplus is equal to the difference between what a consumer is willing to pay for a good or service (i.e. marginal benefit) and the price they actually pay for it. Therefore, option A, marginal benefit minus price summed over the quantity consumed, is the correct formula for calculating consumer surplus.

Consumer Surplus Is Equal to