Question

State with reason whether you agree or disagree.
There are no criticisms to the law of DMU.

Answer 1

No, there are some limitations of the law of DMU which are:

• It is assumed that the tastes, habits, fashion, and income remains constant. But this is not true realistically.
  
• Income of the consumer is assumed is constant which doesn’t happen and thus he shifts to another good but this is not taken into consideration.
  
• It cannot be applied to goods like television and ACs, where there is no decrease in their marginal consumption.
  
• It focuses on goods which are assumed to be exactly same and gives the same level of satisfaction. Again this is not possible realistically.