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A consumer would have been willing to pay more for a good than the market equilibrium price they actually paid. What is the amount they saved, the gap between what they would have paid and what they actually paid, called?
AProducer surplus
BDeadweight loss
CConsumer surplus
DSocial surplus
Answer & Solution
Correct answer: C. Consumer surplus
1. Consumer surplus is defined from the buyer's side of the transaction.
2. It is the gap between the maximum a buyer would have paid and the equilibrium price they actually paid.
3. Producer surplus is the mirror concept measured from the seller's side instead.
4. Deadweight loss and social surplus describe market-wide totals, not one buyer's individual gain.
_Source: OpenStax Principles of Macroeconomics for AP Courses (CC BY 4.0), Ch 3 "Demand and Supply", section 3.5 | Demand, Supply and Efficiency_
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