Consumer surplus is the
A) the difference between the maximum price consumers are willing and able to pay and the minimum price producers are willing to accept.
B) the difference between the maximum price consumers are willing and able to pay and the price actually paid to producers.
C) the difference between the amount a producer is willing to accept and the price actually received.
D) the area under the marginal benefit curve.
E) the total amount consumers paid for a product.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing and able to pay for a good and the price they actually pay. It represents the extra value or benefit that the consumer receives from purchasing the good at a price lower than their maximum willingness to pay. It is calculated as the area between the demand curve and the market price, up to the quantity purchased.

Consumer Surplus Is the