Concept:Consumer surplus is the extra benefit a consumer gains when the actual price paid is less than the maximum price they are willing to pay.
Explanation:The maximum amount a consumer is willing to pay reflects the marginal utility derived from the commodity.
The actual price paid is the market price of the commodity.
Consumer surplus measures the difference between these two values.
For example, if a consumer is willing to pay
150 for a good but buys it for
100, the consumer surplus is
150−100=50.
Thus, consumer surplus is the excess of marginal utility over the price paid.
Answer:D. excess of marginal utility over price.