Which concept is most closely related to a consumer's willingness to pay and is used to measure the benefit consumers receive from participating in a market?

• A. Price elasticity of demand
• B. Producer surplus
• C. Marginal cost
• D. Consumer surplus

Answer: (D)

Verified step by step guidance

1. Understand that the problem asks for the concept related to a consumer's willingness to pay and the benefit they receive from market participation.
2. Recall that willingness to pay represents the maximum price a consumer is ready to pay for a good or service.
3. Recognize that consumer surplus measures the difference between what consumers are willing to pay and what they actually pay, capturing the net benefit to consumers.
4. Differentiate consumer surplus from other concepts: price elasticity of demand measures responsiveness to price changes, producer surplus relates to producers' benefits, and marginal cost is the cost of producing one more unit.
5. Conclude that consumer surplus is the concept most closely related to willingness to pay and consumer benefit in a market.