What is the limitation of Consumer Surplus:

CA Foundation · Business Economics · RTP · May 2025
What is the limitation of Consumer Surplus:
(A) A. Consumer surplus cannot be measured precisely
(B) B. The Consumer surplus derived from a commodity is affected by availability of substitute
(C) C. Both (a) & (b)
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Both (a) & (b)

Topics: Theory of Demand and Supply

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