Question

Consumer​ surplus:
a. is the difference between the true value of a good and the amount a person is willing to pay for the good.
b. represents the maximum amount a person is willing to pay for a particular good.
c. is the difference between the current market price and the cost of production for the firm.
d. is the difference between the maximum amount a person is willing to pay for a good and its current market price.

Answer 1

Consumer surplus is the difference between the maximum amount the consumer is willing to pay for the price of the good and the price that was actually paid by the consumer or commonly known as the current market price. The price that the consumer is willing to pay is determined by the demand curve in the market.

Answer 2

B. represents the maximum amount a person is willing to pay for a particular good.