Ordinal Utility and Demand Theory-I. Introduction. We know that the Marshallian Demand curve is based upon the assumptions that: (1) The utilities derived from consuming n-commodities are independent and are additive . (4.1)……………… and (2) The level of utility is cardinally measurable.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Because, plausibly, a utility function should be a joint function of all consumed as:
i) The term φ1 and φ2 denote MU1(=dU/dx1) and MU2(=dU/dx2), where MU1 and MU2 > 0 (4.2)