Udenwa, Theresa A2023-12-102023-12-102000-12-13Branson W. B. (1979) Macroeconomic Theory and Policy. Harper and Row, New York. Dernburg T. F. and Dougal D. M. (1976) Macroeconomics McGraw- Hill New York. Dewett K.K. (1981) Modern Economic Theory, Shagam Lai, New Delhi. Ferguson C. E. (1980) Microeconomic Theoty, London: Cambridge University Press. Henderson J. V. and People W. (1991) Microeconomics Health and Company Lexington. Henderson J. V. and Poole W. (1991) Microeconomics Health and Company Lexington.https://keffi.nsuk.edu.ng/handle/20.500.14448/121The theory of demand seeks to establish the relationship between the quantity demanded of a commodity and its price. It offers an explanation for variations in demand and the downward sloping nature of a normal demand curve. There are two basic approaches to the explanation of individual consumer behaviour. One of which is the cardinal utility approach simply referred to as the utility approach while the other is the ordinal utility approach otherwise called the indifference curve, approach. Both approaches are useful in that they provide an explanation for the normal downward sloping demand curve in addition each approach yields valuable but different insights into consumer behaviour. But whereas the cardinal approach puts precise values on alternatives available to the consumer, the indifference curve method ranks the alternatives from low to high with no precise values being placed on the magnitude of the intervals between them. Thus whereas the cardinal or utility approach ranks utility derived from commodities in terms of utils the ordinal approach ranks them in terms of one being preferred against the other without giving the exact magnitude of the preference.enBook