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Line 9: If a consumer always picks an optimal package as defined above, then x(p, w) is called the [[Marshallian demand correspondence]]. If there is always a unique maximizer, then it is called the [[Marshallian demand function]]. The relationship between utility and Marshallian demand in the Utility Maximization Problem mirrors the relationship between indirect utility and [[Hicksian demand]] in the [[Expenditure Minimization Problem]]. In practise, a consumer may not always pick an optimal package. For example, it may require too much thought. [[Bounded rationality]] is a theory that explains this behaviour with [[satisficing]] - picking packages that are suboptimal but good enough. ==References==

Utility maximization problem: Difference between revisions