Marshallian and Hicksian demand functions without calculus

This study introduces an innovative method for deriving the Marshallian and Hicksian demand functions without the need of calculus, thus enhancing the accessibility of these fundamental economic models for audiences with less mathematical expertise. Conventional derivations of these demand functions employ calculus to optimize utility and expenditure within restrictions, potentially restricting accessibility in educational contexts and practical implementations. We utilize algebraic methods, such as Cauchy’s inequality and the Arithmetic Mean-Geometric Mean [1], [3] (AM-GM) inequality, to derive these functions, illustrating that they may be expressed through fundamental algebraic propositions and inequalities. Our methodology enhances the literature by providing an alternate framework for comprehending demand theory that maintains mathematical precision without necessitating differential calculus. This method is applied to prevalent utility functions, such as the Cobb-Douglas and Stone-Geary models, to demonstrate the usefulness and applicability of algebraic derivations in economic modeling. This study possesses significant importance for economic education, since it corresponds with current initiatives to make quantitative economics more accessible. The proposed algebraic framework may be beneficial in applied economics settings where advanced mathematical tools are scarce. This study seeks to connect intricate calculus-based methodologies with accessible algebraic methods, so expanding the accessibility of microeconomic theory and providing an inclusive option for demand function analysis.