Consumer Surplus Defined

Steps:

• Recall that consumer surplus measures the difference between what consumers are willing to pay and what they actually pay.
• Identify the market equilibrium where price equals the intersection of supply and demand.
• Note that the demand curve shows maximum willingness to pay, above the equilibrium price.
• Compare options to this definition to find the match.

Why C is correct:

• Consumer surplus is the area above the market price and below the demand curve, meaning consumers value rice more than its price, per economic theory.

Why the others are wrong:

• A: Surplus benefits consumers, but doesn't compare total benefits to producers (that's net welfare).
• B: This describes excess demand, not surplus; equilibrium balances supply and demand.
• D: Production equals supply at equilibrium; this option is nonsensical.

Final answer: C