Application of theory of consumer behavior, Macroeconomics

Application of Theory of Consumer Behavior

As already discussed earlier, the theory is an important tool to interpret and analyse demand curves. Apart from its usefulness as a theoretical tool, it can be applied to practical decision making. It can be useful in any situation where a person or organization has to allocate a fixed amount of money among alternative uses. This model is much more than a theory of consumer behaviour; it is a theory of rational choice. That is, it is a theory which indicates how rational choices should be made. The model helps to assess which factors are important to a decision maker and how these factors should be used or combined to make a decision. 

 

 

Posted Date: 7/21/2012 6:29:32 AM | Location : United States







Related Discussions:- Application of theory of consumer behavior, Assignment Help, Ask Question on Application of theory of consumer behavior, Get Answer, Expert's Help, Application of theory of consumer behavior Discussions

Write discussion on Application of theory of consumer behavior
Your posts are moderated
Related Questions
Q. Determine the Exchange rate? Exchange rate is determined by the ratio of domestic price level to the foreign price level. If, for instance domestic prices increase by 10% wh

An antenna shown in Figure is to be adjusted from its current position to a new desired position by turning a potentiometer at an angle θ i (t) . The potentiometer converts the an

Burwood Mining is raising capital of $500,000 for its next project from the following sources: Sources Amount $ Common stock 100,000

Control: In apples molded by Penicillium expansum, most of the patulin is confined to the region of damaged tissue and simply removing the lesions reduces the toxin by 90%, but i

Q. Explain about Labor Market  in AS-AD model? In AS-AD model, economy will always be on the response curve - the thick line in chart below.  Figure: The labor in the

Christina Romer and Jared Bernstein in "The Job Impact of the American Recovery and Reinvestment Plan" calibrated the impact of the proposed expansionary fiscal policy (we know it

Firms such a Moody's and Standard &Poor's study corporations that issue bonds. They publish "ratings" for the bonds- evaluation of the likelihood of default. Suppose these rating c

What is independent monetary policy Advantages: First, in a freely-floating exchange rate, the exchange rate must move down or up to correct a payments imbalance. Second, monet

If the MPPL/ MPPK in the production of a good are less than w/r, why is the produce not in producer equilibrium? Explain how, with no change in budget size for the firm and with th

In real life, the operation of simple multiplier is affected by many leakages. Leakages in the multiplier arise out of the following reasons: (1) Saving:  If all the income is sp