Question

The oldest approach to the theory of demand is ________.

• A. the marginal utility approach
• B. the total utility approach
• C. the cardinal utility approach
• D. the ordinal utility approach

Answer 1

The correct option is C the cardinal utility approach

Cardinal utility analysis is the oldest theory of demand which provides an explanation of consumer's demand for a product and derives the law of demand which establishes an inverse relationship between price and quantity demanded of a product.