What term is used to describe the benefit that consumers receive when they pay less than the maximum they are willing to pay?

The term that describes the benefit consumers receive when they pay less than the maximum amount they are willing to pay is consumer surplus. This concept reflects the difference between what consumers are prepared to spend for a good or service and what they actually pay. When consumers obtain a product at a price lower than their maximum willingness to pay, they experience a gain, which enhances their overall satisfaction or utility.

Consumer surplus is a key concept in economics as it illustrates how market transactions can lead to an increase in consumer welfare. For example, if a consumer is willing to pay $100 for a concert ticket but buys it for $75, they gain a consumer surplus of $25. This surplus can also indicate the efficiency of markets and how well they allocate resources, as higher consumer surplus tends to suggest that consumers are getting more value from their purchases relative to the prices they pay.

Understanding consumer surplus helps to analyze the effects of pricing strategies, taxation, and subsidies on consumer behavior and overall market health. It's a fundamental component of welfare economics, providing insights into how changes in supply and demand affect consumer well-being.