Question

The difference between the maximum amount a person is willing to pay for a given quantity of a good and the amount actually paid for that quantity is known as _____

Answer 1

Answer: consumer surplus

Explanation:

The difference between the maximum amount a person is willing to pay for a given quantity of a good and the amount actually paid for that quantity is known as consumer surplus. On a supply and demand curve, it is the area between the equilibrium price and the demand curve. For example, if you would pay 76 dollars for a cup of tea but can buy it 50 dollars, your consumer surplus is 26 dollars