Answer to Question #255510 in Microeconomics for Ammu

Question

Differentiate between a Hicksian and a Walasian demand function

Answer 1

Marshallian demand function shows how goods prices are related to the quantity demanded. On the other hand, the Hicksian demand function shows how the price of a good is related to the quantity demanded in a situation where the price of other goods and level of utility remains constant.