Consumer surplus is the difference between the highest price a consumer is willing to pay and the actual price they do pay for the good, or the market price.
The market price is the price at which a good or service is currently being bought or sold. The dynamics of supply and demand have an impact on a good or service's market pricing. The cost at which the quantity supplied and the amount wanted are equal is known as the market price.
The factors of supply and demand are very important in determining the value of stocks. Demand refers to the quantity of shares people want to purchase, whereas supply refers to the quantity of shares people want to sell.
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