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6) We used A to connect preferences with observable demand and then made an assumption that preferences are B to deduce that the area under
6) We used A to connect preferences with observable demand and then made an assumption that preferences are B to deduce that the area under the curve shown in Figure 2 below is a measure of a consumer's utility when price of the good changes . Qty of Good 2' pa Pb Price of Good i Figure 2. Marshallian Demand for Good 1
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