Answer: consumer surplus
Explanation:
The difference between the maximum amount a person is willing to pay for a given quantity of a good and the amount actually paid for that quantity is known as consumer surplus. On a supply and demand curve, it is the area between the equilibrium price and the demand curve. For example, if you would pay 76 dollars for a cup of tea but can buy it 50 dollars, your consumer surplus is 26 dollars
The demand for goods and services often varies. Consumer surplus is the difference between the maximum amount a person is willing to pay for a good and its current market price.
Consumers' surplus is simply know as the amount or how one measure consumer welfare. It is simply known as the overflow or excess of social valuation of product over the price of the product that was paid.
For one to be able to find the maximum price willing to pay, the following simple equation is used: consumer surplus = maximum price willing to pay - actual market price.
The difference that is observed between the price and the cost of production is called profit while the difference that is observed between price and the willingness to pay is known to be consumer surplus.
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