The authors consider an economy with pure factors of production, private ownership of endowments, and constant returns to scale in production. Typically in such an economy, the weak axiom of revealed preference for market demand does not hold. The main reason for this is that the income...

The note shows that the following features of a consumption sector tends to enforce the "Law of Demand": The statistical Engelcurves "bend slowly" and there is sufficiently "dispersion" in the distribution of income.