A statistical interpretation of a market demand curve for a commodity obeying the law of demand
DOI:
https://doi.org/10.7494/manage.2023.24.1.27Abstract
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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2024-04-05
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How to Cite
Lahiri, S. (2024). A statistical interpretation of a market demand curve for a commodity obeying the law of demand. Managerial Economics, 24(1), 27. https://doi.org/10.7494/manage.2023.24.1.27