The difference between the highest price a consumer is willing to pay for a good and the price the consumer actually pays is called
A)producer surplus.
B)the substitution effect.
C)the income effect.
D)consumer surplus.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good and the price they actually pay, therefore D is the correct answer. A is incorrect because producer surplus is the difference between the minimum price a producer is willing to accept for a good and the price they receive. B and C are incorrect because they refer to the effects of changes in price on consumer behavior, not the difference between the maximum price a consumer is willing to pay and the actual price paid.

The Difference Between the Highest Price a Consumer Is Willing