A statistical interpretation of a market demand curve for a commodity obeying the law of demand

Authors

  • Somdeb Lahiri PDEU

Abstract

In this note we provide a statistical interpretation of the Marshallian market demand curve of a commodity that obeys the law of demand and which has a finite and positive level of satiation. A consequence of our approach is that in the context of two goods, we are able to obtain demand functions which are very similar to those obtained by “budget-constrained Cobb–Douglas utility maximization”, but now as a result of a “budget-constrained linear utility maximization” exercise, although our budget constraint is “slightly different” from the one that would be used for the former optimization problem.

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Published

2023-12-10

How to Cite

Lahiri, S. (2023). A statistical interpretation of a market demand curve for a commodity obeying the law of demand. Managerial Economics, 24(1), 27. Retrieved from https://journals.agh.edu.pl/manage/article/view/5969

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Articles