Question

Consumer surplus arises in a market because d. at the current market price, quantity supplied is greater than quantity demanded. c. the market price is below what some consumers are willing to pay for the product. a. at the current market price, quantity demanded is greater than quantity supplied. b. the market price is higher than what some consumers are willing to pay for the product.

Answer 1

Answer:

The correct answer is letter "B": the market price is below what some consumers are willing to pay for the product.

Explanation:

Consumer Surplus is an economic indicator of customer satisfaction, measured by analyzing the difference between what consumers are willing to pay for a good or a service, compared to the market price. A consumer surplus happens when a buyer is willing to pay more than the current market price for a given item.

Consumer surplus is not a concrete surplus since it does not produce extra income for customers. It is a good feeling to get a better deal than expected.