Question

Consumer surplus: Select one: a. is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price. b. the difference between the maximum prices consumers are willing to pay for a product and the minimum prices producers are willing to accept. c. the difference between the minimum prices producers are willing to accept for a product and the higher equilibrium price. d. rises as equilibrium price rises.

Answer 1

Answer: a. is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price

Explanation:

Consumer surplus is known to be the differences between the amounts consumers are ready and able to purchase and pay for a good and the market price which the consumers are charged to pay for the good. It is represented on the demand curve by the area under it which is at the top of the equilibrium price. Thus, it is of great benefit to consumers because they buy products for lesser prices in the market than the prices which they are expecting to pay for the products.