Answer:
The answer is: B) is the difference between the maximum amount a person is willing to pay for a good and its current market price.
Explanation:
Consumer surplus is the difference between the maximum price a consumer is willing to pay for a product or service and the actual price of the product or service.
Consumer surplus can be better explained at a personal level. Imagine a person wants to buy a new smartphone. He or she is willing to pay up to $600 for a new unit. He looks around a store and finds the smartphone that best suits him (or her) and it only costs $500. The difference between the amount the customer was willing to pay for a smartphone and the actual price of the smartphone ($600 - $500 = $100) is that consumer's surplus on smartphones.
In a demand-supply curve, consumer surplus is given by the area below the demand curve and above the equilibrium price.
