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10 June, 16:31

Consumer surplus is the a. amount of a good consumers get without paying anything. b. amount a consumer pays minus the amount the consumer is willing to pay. c. amount a consumer is willing to pay minus the amount the consumer actually pays. d. value of a good to a consumer.

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  1. 10 June, 20:25
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    C) amount a consumer is willing to pay minus the amount the consumer actually pays.

    Explanation:

    Consumer surplus is a situation in which a consumer is willing to pay more for a product but he/she actually pays less that is he pays a lesser price compared to what he is willing to pay.

    For example, a consumer is willing to pay $5 for a magazine but when he got to the mall, the price of the magazine is $4. The consumer surplus will be price he is willing to pay minus the price he bought it.

    Consumer surplus = $5-$4

    =$1

    Consumer surplus is the difference between between the willing price of a consumer and the actual price paid (lesser than the willing price). It is a benefit to the consumer because they pay less than what is expected at the same value of satisfaction.

    Consumer surplus is represented on a supply and demand curve by the area between the equilibrium price and the demand curve.
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