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Homework answers / question archive / The difference between the price consumers are willing to pay and the price that they actually pay is known as: A) price discrimination

The difference between the price consumers are willing to pay and the price that they actually pay is known as: A) price discrimination

Economics

The difference between the price consumers are willing to pay and the price that they actually pay is known as:

A) price discrimination.

B) government surplus.

C) producer surplus.

D) consumer surplus

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The answer is the difference between the price consumers are willing to pay, and the price they actually pay is known as D) consumer surplus.

The sketch below shows the consumer surplus in the market. The shaded area, which forms a triangle at the equilibrium price and quantity and the vertical intercept of the demand line, is the consumer surplus.

please see the attached file for the complete solution

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