The consumer surplus concept supports pricing strategy because:

CA Foundation · Business Economics · RTP · September 2026
The consumer surplus concept supports pricing strategy because:
(A) (A) It measures producer costs only
(B) (B) It identifies hidden value consumers derive compared to what they pay
(C) (C) It shows price increases raise surplus
(D) (D) It ignores demand curves

Suggested Answer and Working Notes:

Correct Answer: Option (B)

Correct Option: (B)

Topics: Theory of Demand and Supply

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