Question

Consumer surplus is a. the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it. b. the amount a buyer is willing to pay for a good minus the cost of producing the good. c. the amount by which the quantity supplied of a good exceeds the quantity demanded of the good. d. a buyer's willingness to pay for a good plus the price of the good.

Answer 1

a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

Step-by-step explanation:

We know that,

The producer and consumer surplus are shown below:

Producer surplus = Market price - Actual amount to sell the goods

And, the consumer surplus = Willing to pay - Market price

The producer surplus is related to the producer whereas the consumer surplus is related to the buyer

Hence, option a is correct