Saved Bookmarks
| 1. |
Explain the theory of “consumer’s surplus” |
|
Answer» The concept of consumer’s surplus is based on the law of diminishing marginal utility. Alfred Marshall defines consumer’s surplus as “The excess of price which a person would be willing to pay rather than go without the thing, over that which he actually does pay is the economic measure of this surplus satisfaction. This may be called a consumer’s surplus. |
|