Consumption Theorems in Terms of Overcompensation Rather Than Indifference Comparisons

To be of interest a scientific theory must have consequences. Upon hard-boiled examination, the theory of consumer's behaviour turns out not to be completely without interest. By this I mean: consumption theory does definitely have some refutable empirical implications. The prosaic deductive task of the economic theorist is to discern and state the consequences of economic theories. In this,-paper I propose to deal with an extremely simple question Under what conditions can we expect the quantity demanded by a consumer of a good to be inversely related to its price ? This and related issues provide a good illustration of certain new methods of modern economic theory, and a testing of their powers.