Chapter Questions
Compare indifference curve analysis of demand with Marshallian cardinal utility analysis. Which do you think is superior?
Distinguish between cardinal and ordinal measurement of utility. Which do you think is more realistic ?
The equivalence of a given change in price to a suitable change in income is a major discovery of ordinal utility analysis. Explain
"By assuming independent utilities Marshall completely bypassed the relation of substitution and complementary between comodities' Discuss
Indifference curve analysis is "old wine in a new bottle" (D.H. Robertson). Do you agree ? Discuss.
"The distinction between direct and indirect effects of a price change is accordingly left by cardinal utility theory as an empty box, which is crying out to be filled" (J.R. Hicks). Discuss.
"The replacement of the principle of diminishing marginal utility by the principle of diminishing marginal rate of substitution is not a mere translation. It is a positive change in the theory of consumer demand". (J.R. Hicks). Discuss.