September 1, 2020

Criticisms of Cardinal Utility Analysis

The Cardinal utility approach provides a sound basis for analyzing consumer behavior based on the arithmetic measurement and expression of utility. However, economists have pointed out some criticisms or drawbacks of cardinal utility analysis. The following are the basic drawbacks or limitations of cardinal utility analysis. An incorrect assumption of cardinal measurement of utility According […]

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Derivation of Demand Curve under Cardinal Utility Analysis

The key purpose of the analysis of consumer behavior is to derive a consumer demand curve. Here we will discuss the derivation of the demand curve under cardinal utility analysis in the case of one commodity and case of two commodities. Learning Objective To deal with the derivation of the demand curve under cardinal utility

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