Which economic concept is closely related to consumer surplus?

Consumer surplus is a key concept in economics that measures the benefit consumers gain when they pay less for a product than what they are willing to pay. It represents the difference between the maximum price consumers would be willing to pay for a good or service and the actual price they pay.

Producer surplus, which is identified as the correct answer, is closely related to consumer surplus because it reflects the benefit producers receive when they sell a product for more than the minimum price at which they would be willing to sell. Together, consumer and producer surplus are used to understand market efficiency and the overall welfare of both consumers and producers in a market.

The relationship between consumer surplus and producer surplus illustrates how total economic welfare is maximized in a competitive market—when both consumers benefit from lower prices and producers benefit from higher sales. This interdependence highlights the importance of both concepts in analyzing market dynamics.

The other options, while important in economics, do not directly relate to consumer surplus in the same way. Market demand refers to the relationship between the price of a good and the quantity demanded, fixed costs pertain to the costs of production that do not change with the level of output, and opportunity cost represents the value of the next best alternative that is forgone when making a