Which best describes consumer surplus?

The price consumers are willing to pay for a unit

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The cost of providing a unit

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The profits made by a firm

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The difference between the price a consumer pays for an item and the price he/she is willing to pay for it

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Solution

The correct option is D
The difference between the price a consumer pays for an item and the price he/she is willing to pay for it

Consumer surplus is the difference between the price a consumer pays for an item and the price he/she is willing to pay for the item.

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Similar questions

Q. The price which a consumer would be willing to pay for a commodity equals to his ________.

Q. The maximum price the consumer is willing to pay for a commodity to maximise satisfaction is equal to __________.

Advertiser: The revenue that newspapers and magazines earn by publishing advertisements allows publishers to keep the prices per copy of their publications much lower than would otherwise be possible. Therefore, consumers benefit economically from advertising.
Consumer: But who pays for the advertising that pays for low-priced newspapers and magazines? We consumers do, because advertisers pass along advertising costs to us through the higher prices they charge for their products.

Which of the following best describes how the consumer counters the advertiser’s argument?

Q. When _______, there will be allocative efficiency meaning thereby that the cost of the last unit is exactly equal to the price consumers are willing to pay for it and so that right goods are being sold to the people at the right price.

Q. When _____ there will be allocative efficiency meaning thereby that the cost of the last unit is exactly equal to the price consumers are willing to pay for it and so that the right goods are being sold to the right people at the right price.

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Which best describes consumer surplus?

The correct option is D The difference between the price a consumer pays for an item and the price he/she is willing to pay for it Consumer surplus is the difference between the price a consumer pays for an item and the price he/she is willing to pay for the item.

The correct option is D
The difference between the price a consumer pays for an item and the price he/she is willing to pay for it

Consumer surplus is the difference between the price a consumer pays for an item and the price he/she is willing to pay for the item.