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
In 2004, Olentangy health care cost of capital was 6%. Its investments on a historical cost valuation basis are $80,000; on a replacement cost basis are $100,000. And on a current

Lucas’ point of view, what are the limitations of the Keynesian model? What improvements does he suggest?

Relate overnight rate with money supply When the overnight interest rate decreases, the money supply increases When the overnight interest rate increases, the money supply d

In an article about the financial problems of USAToday,News week reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should raise

a) There is a general trade, and sometimes prominent as in case of UK, Canada, and Europe. When the tariff rates are showing an upward trend, the trade/GDP ratio is either declinin

Explain about the nominal Gross domestic product It isn't very common to use CPI in construction of real GDP. The reason is that CPI measures the price evolution of consumer go

C=100+0.75Yd How do i calculate marginal propensity to consume?

what are the effects of interest rate in the economy of south africa in unemployment, economic groth, employment. and economic growth

Relate central banks with commercial banks In many countries, the central bank imposes reserve requirements. This means that commercial banks are obliged to hold a certain perc

What is the price elasticity of demand? It is the Defining and Measuring Elasticity. The price elasticity of demand is the ratio of the percent modification into the quantit