Which one of the following statements is an apt reflection of J. R. Hick’s Indifference curve Analysis of demand?

Pareto's theory with Marshall's method
Pareto's theory with Pareto's method
Marshall's theory with Pareto's method
Marshall's theory with Marshall's method

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 better than another economic state if at least one person is better off and no one is worse off.

Marshall’s method is a method of measuring the utility of different goods. Marshall’s method states that the utility of a good is the satisfaction that a consumer gets from consuming the good.

In conclusion, the correct answer is: D. Marshall’s theory with Marshall’s method.

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