The difference between the price consumers are willing to pay and the price that they actually...
Question:
The difference between the price consumers are willing to pay and the price that they actually pay is known as:
A) price discrimination.
B) government surplus.
C) producer surplus.
D) consumer surplus
Consumer and Producer Surplus
In economics, the perfectly efficient market maximizes the sum of the producer surplus and the consumer surplus. This maximum market efficiency is obtained in a perfect competition market type.
Answer and Explanation: 1
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The answer is the difference between the price consumers are willing to pay, and the price they actually pay is known as D) consumer surplus.
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Surplus in Economics: Definition & Overview
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Chapter 10 / Lesson 13
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In this lesson, learn what surplus is in economics. Understand how economic surplus arises and understand the two types of surplus: consumer and producer.
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