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"Indifference curve analysis provides a superior explanation of the shape of the demand curve, however, the concept of diminishing marginal utility provides a better framework for understanding the nature of demand" Discuss.
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"Indifference curve analysis provides a superior explanation of the shape of the demand curve, however, the concept of diminishing marginal utility provides a better framework for understanding the nature of demand" With reference to the fore mentioned theory, critically evaluate this statement. Demand is usually seen as what someone would like to have. But in an economic sense it is what someone would like to have, plus the fact that they have the ability to purchase it is as well. Only when the willingness to purchase it is backed up by the purchasing power to buy it is it called Effective Demand. Utility is derived from a product when it provides satisfaction. The amount of utility taken by someone from a product is different for each product and each individual person. There is no such thing as a unit of satisfaction. Yet the concept must still exist in order for the product...
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