The correct answer is: B. consumer surplus
Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good and the price they actually pay. It is a measure of the benefit that consumers receive from a good or service.
Producer surplus is the difference between the minimum price a producer is willing to accept for a good and the price they actually receive. It is a measure of the benefit that producers receive from a good or service.
Cost-benefit analysis is a tool used to compare the costs and benefits of a project or policy. It is used to determine whether the project or policy is likely to be beneficial overall.
Net utility is the total satisfaction that a consumer receives from consuming a good or service. It is equal to the sum of the consumer’s marginal utilities for each unit of the good or service consumed.
Here is a diagram that illustrates consumer surplus:
[Diagram of a demand curve and a price line]
The demand curve shows the maximum price that consumers are willing to pay for each unit of a good. The price line shows the actual price that consumers pay. The area between the demand curve and the price line is the consumer surplus.
Consumer surplus is important because it measures the benefit that consumers receive from a good or service. It is a measure of the welfare of consumers.