Consumer behavior, Microeconomics

Consumer Behavior

The description of how consumers allot their resources (income) to the purchase of various goods and services to get maximum in their well being.

There are three steps included in the study of consumer behavior.

             1) We will learn consumer preferences.

                     To explain how and why people select one good to the other.

            2) Then we will move to budget constraints.

                     People have restricted incomes.

            3) Then we will combine together consumer preferences and budget constraints to know about consumer choices.

                     What combination of goods will consumers purchase to maximize or enhance their satisfaction?

Consumer Preferences

Market Baskets

           A market basket is a group of one or more commodities.

                  One market basket can be preferred over the other market basket consisting a diverse combination of goods.

                  Three Basic Assumptions

1) Preferences are complete.

2) Preferences are transitive.

3) Consumers always select more of any good to less.

2025_Consumer preferences.png

Posted Date: 7/24/2012 9:12:57 AM | Location : United States







Related Discussions:- Consumer behavior, Assignment Help, Ask Question on Consumer behavior, Get Answer, Expert's Help, Consumer behavior Discussions

Write discussion on Consumer behavior
Your posts are moderated
Related Questions
It is also known a sleadig indicators forecasting National Bureau of Economic Research of U. S.A has identified three types of indicate Leading indicators coincidental indicators a

In a competitive market, the market demand is Qd = 150 - 5P and the market supply is Qs = 5P - 10. As a result of a price ceiling imposed at $14, the new consumer surplus and produ

What was the price index for 2008, 2009 and 2010?

what is micro economics

what is the meaning of total revenue?


identify any four other law of demand and give examples

Institutionalist Economics: A school of heterodox economicsthat emphasizes importance of institutional development and evolution (as opposed to ‘pure' market forces) in explaining

a) Describe and derive the equilibrium contract offered to high risk individuals.                                             b) Describe and derive the equilibrium contract offe

Optimum currency area: An optimum currency area (OCA), also known as an optimal currency region (OCR), is a geographical region in which it would maximize economic efficiency