Which of the following is an important difference between Marshallian demand and Hicksian demand? Marshallian demand focuses on utility maximisation, whereas Hicksian demand focuses on income minimisation. Marshallian demand focuses on maximising total utility, whereas Hicksian demand focuses on maximising marginal utility. O Hicksian demand considers the substitution effect only, while Marshallian demand takes into account both the income and substitution effects. Marshallian demand takes the concept of 'inferior goods' into account, whereas Hicksian demand does not. More than one of the above.
Which of the following is an important difference between Marshallian demand and Hicksian demand? Marshallian demand focuses on utility maximisation, whereas Hicksian demand focuses on income minimisation. Marshallian demand focuses on maximising total utility, whereas Hicksian demand focuses on maximising marginal utility. O Hicksian demand considers the substitution effect only, while Marshallian demand takes into account both the income and substitution effects. Marshallian demand takes the concept of 'inferior goods' into account, whereas Hicksian demand does not. More than one of the above.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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