Question

A comparison of willingness and ability to pay with the price paid shows

the excess of price paid over what the item is worth to the consumer.

the total benefit to the market of the product.

the amount of profit firms earn by selling the product.

how much consumers benefit from buying a specific amount of a good or service.

little because it is like comparing apples with oranges.

A used car is sold for $3,000. What can be a reasonable conclusion?

The buyer is willing to pay at least $3,000 for the car.

The buyer prefers to have the car rather than $3,000 in the bank.

The seller is willing to receive at a minimum $3,000 for the car.

The seller prefers to have $3,000 in the bank rather than the car.

All of the above are reasonable conclusions.

Answer 1

The difference between the willingness to pay and the actual price paid is known as consumer surplus or the benefit consumer receives from buying a product or service. Say, for example, if the customer is willing to buy a pair of shoes for $100, but it is available in the market at a price of $80, then the difference of $20 is the consumer surplus and the benefit which he receives from buying a pair of shoes. Therefore the correct answer is

"how much consumers benefit from buying a specific amount of a good or service"

If a used car is sold for $3000, the best and reasonable conclusion is that the seller is willing to sell the car at a minimum price of $3000 for his car.