How Utility Theory Has Killed the Law of Demand

5 Pages Posted: 4 Nov 2014

See all articles by Hak Choi

Hak Choi

Chienkuo Technology University - Department of International Business; Chung-Hua Institution for Economic Research

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

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

Hak Choi (Contact Author)

Chienkuo Technology University - Department of International Business ( email )

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Changhua City, 500
Taiwan
+886 91 901-4618 (Phone)

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Chung-Hua Institution for Economic Research ( email )

75, Changhsin St.
Taipei
Taiwan

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