The difference between the price consumers are willing to pay and the price that they actually pay is known as:
A) price discrimination.
B) government surplus.
C) consumer surplus.
D) producer surplus.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum amount a consumer is willing to pay for a product and the actual price they pay. It represents the value that consumers receive beyond what they paid for. Price discrimination refers to charging different prices to different consumers based on their willingness to pay. Government surplus is the difference between the price the government pays for a good or service and the minimum price that producers are willing to accept. Producer surplus is the difference between the minimum price a producer is willing to accept for a product and the price they actually receive.

The Difference Between the Price Consumers Are Willing to Pay