Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The difference between what consumers are willing to pay and what they actually pay
B
The total money spent by consumers in a market
C
The amount of goods that consumers are willing to buy at a given price
D
The excess supply of goods in a market
Understanding the Answer
Let's break down why this is correct
Answer
Consumer surplus is the extra benefit that consumers get when they pay less for a product than what they are willing to pay. Imagine you want to buy a video game that you value at $60, but you find it on sale for $40. In this case, you save $20, which is your consumer surplus, as you would have been happy to pay more for the game. This surplus shows how much value consumers gain from purchasing items at lower prices than expected. Overall, consumer surplus reflects the difference between what consumers are willing to pay and what they actually pay, highlighting the economic benefit of market transactions.
Detailed Explanation
Consumer surplus is the extra benefit people get when they pay less than what they are willing to pay. Other options are incorrect because This option confuses spending with surplus; This option talks about how much people want to buy, not the extra value they feel.
Key Concepts
consumer surplus
Topic
Consumer Surplus and Marginal Analysis
Difficulty
easy level question
Cognitive Level
understand
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