limitations of Marshallian approch
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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.
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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
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