Multiple choice

In economics, what a consumer is ready to pay minus what he actually pays, is termed as

  1. consumer's equilibrium

  2. consumer's surplus

  3. consumer's expenditure

  4. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Consumer's surplus is the difference between what a consumer is willing to pay (maximum price) and what they actually pay (market price). It represents the benefit or surplus value consumers receive from a transaction. Consumer's equilibrium is about maximizing utility, not surplus.

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