Consumer surplus is:

A Total spending by consumers

B The difference between what consumers are willing to pay and what they actually pay

C Profit margin

D Tax revenue

✓ Correct Answer: Option B

Consumer surplus = willingness to pay - actual price paid. Graphically, it is the area below the demand curve and above the market price. Maximized at competitive equilibrium.

💡 Why is B) the correct answer?

The correct answer to the question "Consumer surplus is:" is Option B: The difference between what consumers are willing to pay and what they actually pay.

The other options — A) Total spending by consumers, C) Profit margin, D) Tax revenue — are incorrect for this Pre-MBA Exam Prep question. As explained above: Consumer surplus = willingness to pay - actual price paid. Graphically, it is the area below the demand curve and above the market price. Maximized at competitive equilibrium.

📚 About This Pre-MBA Exam Prep Practice Question

This 2-level Pre-MBA Exam Prep question from the Economics topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free Pre-MBA Exam Prep practice test or use flashcards for spaced repetition review.

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Consumer surplus is:

✓ Correct Answer: Option B

📚 About This Pre-MBA Exam Prep Practice Question

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