Derivation of Demand Function | Consumer

In this article we will discuss about the derivation of ordinary demand function and compensated demand function. Ordinary Demand Function: A consumer's ordinary demand function, is also known as the Marshallian demand function, can be derived from the analysis of utility-maximisation. Let’s assume that the utility function of the consumer is: U = q1q2                                                                                             (6.45) And his budget constraint is: [...]