HISET Social Studies Practice

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the HISET Social Studies Test. Access practice exams and detailed explanations to boost your confidence. Prepare effectively and succeed in your test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following best describes consumer surplus?

The difference between what consumers are willing to pay and what they actually pay
The total revenue earned by businesses from sales
The amount of goods available for sale in the market
The level of demand in relation to supply

The correct answer is: The difference between what consumers are willing to pay and what they actually pay

Consumer surplus is effectively the extra benefit that consumers receive when they pay less for a product than what they were willing to pay. This concept highlights the difference between the maximum price consumers are prepared to pay for a good or service and the actual price they end up paying. For instance, if someone is willing to pay $50 for a concert ticket but only pays $30, their consumer surplus is $20. Thus, the definition aligns perfectly with the first choice, making it the best description of consumer surplus. The other options pertain to different economic concepts. Total revenue earned by businesses from sales refers to the income generated from selling goods and services, which does not capture the consumer's benefit in price differences. The amount of goods available for sale in the market relates to market supply rather than consumer-specific experiences of price. Lastly, the level of demand in relation to supply addresses market dynamics but does not illustrate the consumer's gain from lower prices relative to their willingness to pay.