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Derivation of Demand Curve in terms of Utility Analysis
Dr. Alfred Marshall-was of the view that the law of demand and so the demand curve can be derived with the help of utility analysis. He explained the derivation of law of demand (i) in the case of a single commodity and (ii) in the case of two or more than two commodities: In the utility analysis of demand, the following assumptions are made:
Assumptions
(1) Utility is cardinally measurable.
(2) Utilities...