Ace the CLEP Marketing Test 2026 – Market Your Skills to Success!

Consumer surplus measures the economic benefit that consumers receive when they purchase a product for a price that is less than the maximum they are willing to pay. In essence, it is the difference between the total value that consumers attach to a good (their willingness to pay) and the actual market price they pay for it.

When consumers are able to purchase a good for less than what they value it at, they gain extra value or utility, which is captured as consumer surplus. This concept is critical for understanding how market dynamics operate and how pricing can affect consumer behavior. In this context, the value of purchase refers to the maximum price a consumer would pay, while the market price is the actual price at which the good is sold. Thus, the difference between these two figures represents the consumer surplus.

Other choices, while related to market concepts, do not accurately define consumer surplus. The difference between market price and production cost refers more to producer surplus or profit, the total market value of goods sold pertains to overall sales revenue without considering individual consumer values, and overall profit gained from sales is a broader indicator of business profitability rather than a measure of individual consumer benefit.