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 revenue sellers receive from selling goods
C
The amount of goods consumers are willing to buy at a certain price
D
The extra cost incurred by producers when supply increases
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. It shows how much more value people feel they are getting from a good or service compared to the price they actually pay. For example, if someone is willing to pay $100 for a new video game but only pays $70, they gain a consumer surplus of $30. This concept is important because it helps us understand how changes in price can affect consumer happiness and buying decisions. Overall, consumer surplus reflects the economic welfare that consumers enjoy in a market.
Detailed Explanation
Consumer surplus is the extra money people save when they pay less than what they are willing to pay. Other options are incorrect because This answer confuses consumer surplus with seller revenue; This option talks about demand, not surplus.
Key Concepts
Consumer Surplus
Topic
Supply and Demand Interactions
Difficulty
easy level question
Cognitive Level
understand
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