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The concept of consumer surplus was propounded by:
AR. G. D. Allen
BJ. R. Hicks
CAlfred Marshall
DJohn Stuart Mill
Answer & Solution
Correct answer: C. Alfred Marshall
1. Consumer surplus was developed by Alfred Marshall.
2. He defined it as the excess of the price a consumer is willing to pay over what he actually pays.
3. Hicks and Allen developed indifference analysis and Mill contributed to early utility ideas, so those options are wrong.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit II "Theory of Consumer Behaviour", p.8_
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