The basic doctrine of consumers surplus is based on
A)indifference curve analysis
B)revealed preference theory
C)law of substitution
D)law of diminishing marginal utility

Question

Quizplus · Accepted Answer

The basic doctrine of consumer's surplus is primarily based on the law of diminishing marginal utility. This principle suggests that as a consumer consumes more of a good, the additional satisfaction (marginal utility) derived from each additional unit decreases, which is foundational to understanding consumer's surplus.

The Basic Doctrine of Consumers Surplus Is Based on