derive the demand curve from the law of equi marginal utility
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This equation says that the utility derivedfrom spending an additional unit of money must be equal for all commodities. Derivation of Demand Curve The derivation of demand curve is based on the law of diminishing marginal utility. The MU. may by shown by a negatively sloped line.
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Heya....
Demand curve say that :-
Other things remaining constant , then there is an inverse relationship between the own price and the commodity demanded...
Law of equi marginal utility state that :-
Consumer strikes on his equilibrium when he spent the last rupee and it give him equal level of satisfaction...
So ... we can drive demand curve from law of DMU but not from law of Equi marginal Utility...
Thank you
Demand curve say that :-
Other things remaining constant , then there is an inverse relationship between the own price and the commodity demanded...
Law of equi marginal utility state that :-
Consumer strikes on his equilibrium when he spent the last rupee and it give him equal level of satisfaction...
So ... we can drive demand curve from law of DMU but not from law of Equi marginal Utility...
Thank you
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