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Exam Question

Consumer surplus

  • 1. is the difference between what the consumer is willing to pay for all the units consumed and what he/she actually paid
  • 2. is the total value that a consumer receives from a purchase of a particular good
  • 3. is a measure of the gains a consumer receives in the market
  • 4. is the sum of the marginal values to the consumer
  • 5. is the consumption of a commodity above and beyond the amount required by the consumer

View Answer

Answer 1. is the difference between what the consumer is willing to pay for all the units consumed and what he/she actually paid

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