Economy, asked by Riddhi02, 5 months ago

limitations of Marshallian approch

Answers

Answered by summibokaro
1

Answer:

The Marshallian theory is unable to explain Giffen's paradox The constancy of marginal utility of money implies that the income effectsof a fall price is zero. It can never be negative or positive. This prevented. As aresult, the Giffen's paradox cannot be explained with the help ofMarshallian theory.

Answered by chunmunmishra111
3

Answer:

1. utility can be measured cardinally

2. single commodity model is unerelastic

3. money is an imperfect measure of utility

4 Man is not rational

Explanation:

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