Consumer surplus can be defined as

A. the value the consumer gets from buying a product less its price.

B. the value the consumer gets from buying a product plus its price.

C. the price the producer sells a product for including the cost of producing it. t

D. he price the producer sells a product for less the cost of producing it.

Question

Business

Nelson Mendez

30 December, 00:03

Consumer surplus can be defined as

A. the value the consumer gets from buying a product less its price.

B. the value the consumer gets from buying a product plus its price.

C. the price the producer sells a product for including the cost of producing it. t

D. he price the producer sells a product for less the cost of producing it.

+2

Answers (1)

Know the Answer?

Kiana Shields · Answer 1

A. the value the consumer gets from buying a product less its price.

Explanation:

The consumer surplus refers to the benefit a consumer receives when they pay a lower price for a product than the one they were willing to pay. It is calculated by subtracting the price a consumer paid for a product from the maximum price that they were willing to pay. According to this, the answer is that the consumer surplus can be defined as the value the consumer gets from buying a product less its price.