Economy, asked by ramakantparasha210, 10 months ago

Why marshallian demand functions is uncompensated (marshallian)?

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Answered by Anonymous
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Hicksian demand is also called compensated demand. This name follows from the fact that to keep the consumer on the same indifference curve as prices vary, one would have to adjust the consumer's income, i.e., compensate them. For the analogous reason, the Marshallian demand is called uncompensated demand.

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