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The difference between the price the consumer is prepared to pay for a commodity and the price which he actually pays is called
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- Consumer’s Surplus
- Producer’s Surplus
- Landlord’s Surplus
- Worker’s Surplus
- Consumer’s Surplus
Correct Option: A
Consumer surplus is the difference between the maximum price a consumer is willing to pay and the actual price they do pay. If a consumer would be willing to pay more than the current asking price, then they are getting more benefit from the purchased product than they spent to buy it.
