How can consumer surplus be best defined?

Show Answers

The amount a buyer is prepared to pay for one unitThe expense incurred to produce one unitThe earnings gained by a companyThe gap between what a buyer is willing to pay and the actual price paid

Explanation

Consumer surplus refers to the difference between the maximum price a consumer is willing to pay for a product and the actual price they pay. It represents the extra benefit or value consumers receive when they pay less than what they were prepared to spend.