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:

Net Income

The total profit or loss of a company after all expenses, including taxes and interest, have been subtracted from revenue.

Cash Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits in the form of cash.

Net Cash

The difference between a company's total cash inflows and outflows within a period.

Cash Dividends

Payments made by a corporation to its shareholders from its profits.