Mahatma Joytiba Phule Rohilkhand University
Lecture Notes
Managerial Economics
6.12 derivate OF DEMAND CURVE
Marshall deduced the demand angles for goods from their mileage functions. It
should be farther noted that in his mileage analysis of demand Marshall assumed the
mileage functions of different goods to be independent of each other.
In other words, Marshallian fashion of inferring demand angles for the
goods from their mileage functions rests on the thesis of cumulative mileage functions, that is,
mileage function of each good consumed by the consumer doesn't depend
on the volume consumed of any other good.
In case of independent serviceability or cumulative mileage functions, the relations of
negotiation and complementarity between goods are ruled out. Further, in inferring
demand wind or law of demand Marshall assumes the borderline mileage of plutocrat
expenditure( MUm
to remain constant.
We now do to decide demand wind from the cardinal mileage analysis.
Consider the case of a consumer who has a certain given income to spend on a
number of goods. According to the law of equi-borderline mileage, the consumer is in
equilibrium in regard to his purchases of colorful goods when borderline serviceability of
the goods are commensurable to their prices.
therefore, the consumer is in equi- librium when he's buying the amounts
