Criticism of Cardinal Utility Analysis  

Criticism of Cardinal Utility Analysis   The chief points of criticism, which are generally pointed out against the utility analysis approach, are the following: – Cardinal measurement of utility is not possible. It is pointed out that the utility analysis is based on the Cardinal Number system and not on the ordinal number system. According to […]

Factors Influencing the Demand Curve

              Apart from its own place, there are other several factors that determine the nature of the demand curve for a good. We briefly discuss those. 1)   Price of close substitutes and complements: Given other things, if the price of a substitute falls, then the consumer will shift his preference in favor of the […]