How Utility Theory Has Killed the Law of Demand
5 Pages Posted: 4 Nov 2014
Date Written: November 3, 2014
Abstract
This paper shows that the conventional method of deriving the law of demand is not reliable. It may derive positive or negative relation between price and quantity. Such relation has no income foundation, and calling them law of demand or supply is too farfetched. Some alternative derivation method is also suggested.
Keywords: Demand, Utility
JEL Classification: D01
Suggested Citation: Suggested Citation
Choi, Hak, How Utility Theory Has Killed the Law of Demand (November 3, 2014). Available at SSRN: https://ssrn.com/abstract=2518320 or http://dx.doi.org/10.2139/ssrn.2518320
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