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

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