Question

Which of the following approach can be used for determining consumer behaviour?

• A. Indifference Curve Approach
• B. Marshallian Approach
• C. Both (A) and (B)
• D. Neither (A) or (B)

Answer 1

The correct option is C Both (A) and (B)

The indifference curve approach explain the consumers choice between two goods with constant income. The Marshallian approach or the Marshallian demand function of a consumer tells us how much of a good would be bought by the consumer with constant price, income and wealth.