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Browsing by Subject "consumers surplus"

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    Item type:Article, Access status: Open Access ,
    A statistical interpretation of a market demand curve for a commodity obeying the law of demand
    (Wydawnictwa AGH, 2023) Lahiri, Somdeb
    In this note we provide a statistical interpretation of the Marshallian market demand curve of a commodity that obeys the law of demand and which has a finite and positive level of satiation. A consequence of our approach is that in the context of two goods, we are able to obtain demand functions which are very similar to those obtained by “budget-constrained Cobb–Douglas util- ity maximization”, but now as a result of a “budget-constrained linear utility maximization” exercise, although our budget constraint is “slightly different” from the one that would be used for the former optimization problem.