The concept of consumer surplus was propounded by __________.
Alfred Marshall
The correct answer is option 1. Alfred Marshall introduced the concept of consumer surplus. Consumer surplus refers to the difference between what consumers are willing to pay for a good or service and what they actually pay. It is a measure of the benefit to consumers from participating in the market. The other options did not introduce this concept.
Important Questions from Consumer behaviour
In relation to theory of consumers behaviour, which of the following statements is INCORRECT?
Goods whose demand varies inversely with income are called ____ goods.
_____ have an income elasticity of demand of between 0 and +1.
According to ____ theory, a consumer will continue to buy such products that will deliver him the most utility or maximum satisfaction at relative prices.
Which of the following is true for a normal good when there is a decrease in consumer income?
