Marshallian demand
E746877
Marshallian demand is the consumer demand function that expresses the quantity of a good chosen as a function of prices and income, derived from utility maximization under a budget constraint.
Statements (48)
| Predicate | Object |
|---|---|
| instanceOf |
consumer theory concept
ⓘ
demand function ⓘ microeconomic concept ⓘ |
| aggregatedTo | market demand function ⓘ |
| alsoKnownAs |
ordinary demand
ⓘ
uncompensated demand ⓘ |
| appliesTo | individual consumer ⓘ |
| argument |
income w
ⓘ
price vector p ⓘ |
| assumes |
complete preferences
ⓘ
locally non-satiated preferences ⓘ transitive preferences ⓘ utility maximization behavior ⓘ |
| canBe |
continuous
ⓘ
differentiable ⓘ |
| captures |
income effects
ⓘ
substitution effects ⓘ |
| contrastsWith | Hicksian (compensated) demand NERFINISHED ⓘ |
| dependsOn |
nominal income
ⓘ
relative prices ⓘ |
| derivedFrom | utility maximization ⓘ |
| describes | quantity of a good demanded ⓘ |
| domain | microeconomics ⓘ |
| expressedAs | solution to max u(x) s.t. p·x ≤ w ⓘ |
| hasInput |
consumer income
ⓘ
consumer preferences ⓘ prices of goods ⓘ |
| historicalContext | developed in neoclassical economics ⓘ |
| mathematicalForm | x_i(p,w) ⓘ |
| mayViolate | law of demand in presence of Giffen goods ⓘ |
| namedAfter | Alfred Marshall NERFINISHED ⓘ |
| output | optimal consumption bundle ⓘ |
| property |
Walras law compliance
ⓘ
adding-up of expenditures equals income ⓘ homogeneous of degree zero in prices and income ⓘ |
| relatedConcept |
Hicksian demand
NERFINISHED
ⓘ
Slutsky equation NERFINISHED ⓘ expenditure function ⓘ indirect utility function ⓘ |
| solutionOf | consumer utility maximization problem ⓘ |
| subfieldOf | consumer theory ⓘ |
| subjectTo | budget constraint ⓘ |
| usedFor |
comparative statics analysis
ⓘ
deriving individual demand curves ⓘ deriving market demand ⓘ policy evaluation ⓘ tax incidence analysis ⓘ welfare analysis ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.