Show that when prices and income increase in the same proportion, there will be no change in quantity demanded for a commodity in Marshallian approach.
In the Marshallian approach, consumer demand for a commodity is a function of its price, the prices of related goods, and the consumer's money income. When both the price of a commodity and the consumer's money income increase in the exact same proportion, the consumer's real income remains unchanged. Imagine a consumer earning ₹100 and buying a good for ₹10. If both income doubles to ₹200 and the price doubles to ₹20, the consumer can still afford the same quantity of the good (10 units). This is because their purchasing power, relative to that specific good, hasn't altered. Since their ability to command goods and services remains constant in real terms, and assuming other factors like tastes and prices of other goods are static, their quantity demanded for the commodity will also remain unchanged. The consumer simply faces higher nominal prices and higher nominal income, but their fundamental budget constraint, in real terms, is the same.
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