The correct answer is: D. Marshall’s theory with Marshall’s method.
J. R. Hicks’ indifference curve analysis of demand is an extension of Alfred Marshall’s theory of consumer demand. Hicks used indifference curves to represent a consumer’s preferences between different combinations of goods. He showed that a consumer’s demand for a good is determined by the prices of goods, the consumer’s income, and the consumer’s preferences.
Pareto’s theory of optimality is a different theory that is not related to Hicks’ indifference curve analysis. Pareto’s theory states that a situation is optimal if it is impossible to make someone better off without making someone else worse off.
Marshall’s theory of consumer demand is a theory that explains how consumers make decisions about what to buy. Marshall’s theory states that consumers will buy the combination of goods that gives them the most satisfaction, given their budget and the prices of goods.
Pareto’s method is a method of ranking different economic states. Pareto’s method states that an economic state is
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