PRODUCT QUALITY AND THE LAW OF DEMAND 2 Product Quality and the Law of Demand : An Example of early $ 2 . 5 Gold Coins

Abstract

This article suggests that the Slutsky analysis should be extended so that quality is included in the consumer's utility function as a continuous variable. When quality is included in the consumer's utility function, the consumer is conceived to maximize his/her utility subject to his/her budget constraint by trading off quantity, quality, and price for… (More)

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