What Is Meant by Consumer Surplus

question 53

Multiple Choice

What is meant by consumer surplus?

• A)It is the total quantity of a good bought by a consumer divided by the price paid.
• B)It is a measure of an individual consumer's utility from the consumption of a good.
• C)It is the difference between a consumer's maximum willingness to pay and the price.
• D)It is a measure of the total benefit to consumers from the purchase of a good.

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Definitions:

Accounts Receivable

Money owed to a company by its debtors for goods sold or services rendered on credit.

AASB 121

Specifies the requirements for accounting for foreign exchange rates and their effects on foreign currency transactions, including translation of foreign currency financial statements into the entity's presentation currency.

Presentation Currency

The currency in which the financial statements of an entity are presented.