alleryThe 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_
Keep practising Theory of Consumer Behaviour & Demand
Browse all Theory of Consumer Behaviour & Demand questions for CA Foundation, or explore more Economics topics.
Related questions
Tap what can shift the demand curveNormal good or inferior good?Which one does NOT belong?True or false: indifference curvesMatch each consumer term to its meaningA point lying inside (below) the budget line indicates that the consumer is:The slope of the budget line is determined by the:Two indifference curves can never intersect each other because intersection would imply th