1 Consumer surplus a is the difference between the maximum p

1) Consumer surplus

a) is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price

b) is the difference between the maximum prices consumers are willing to pay for a product and the minimum prices producers are willing to accept.

c) is the difference between the minimum prices producers are willing to accept for a product and the higher equilibriu price.

d) rises as equilibrium prices rises.

Solution

The correct option is (A).

a). Is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price.

Consumer surplus is the difference between (the consumer\'s) maximum willingness to pay for a product and the actual price of the product.

i.e: It is the area below the demand curve and above equilibrium price line.

The consumer surplus is above market price and below demand curve