Weber-Fechner's Law, Demand Function and Related Topics

Kazuyasu Shigemoto

Microeconomics from EconWPA

Abstract: In our previous paper, we derive the demand function in the form p=du(x)/dx and we apply the Weber-Fechner's law to the utility function and we obtain the demand function in the familiar form p=A/x. We compare our derivation of the demand function with the standard one. The differences are i) different functional form of the utility function, ii) different objective function to aximize, iii) different treatment of the budget condition. We also study how much quantity of goods we should distribute to N persons in n kinds of goods. By adding each person's demand function, we obtain the total demand function. By the market equilibrium, we obtain the only unique solution of how much quantity of goods we should distribute to each person. The quantity of goods is distributed according to each person's preference.

Keywords: Weber-Fechner's law; utility function; demand function; Pareto optimum (search for similar items in EconPapers)
JEL-codes: D1 D2 D3 D4 (search for similar items in EconPapers)
Date: 2005-03-07
Note: Type of Document - pdf; pages: 8. Type of Document - PDF
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpmi:0503004

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