Theory of consumer behavior, Microeconomics

THEORY OF CONSUMER BEHAVIOR:

It is generally observed that market aggregate demand curve for a commodity is downward sloping, given other things. Our problem is to investigate economic rationality behind this for a commodity of all individual consumers. The market demand basically depends on the characteristics of demand for a commodity by individual consumers, and the demand for a commodity of an individual consumer depends upon the behaviour of the consumer. Clearly, to  investigate economic rationality behind the law of demand, we shall start with the analysis of consumer behaviour.  

There are different approaches to analyse the consumer behaviour. But in all approaches, it is assumed that the consumer is rational. This means that the consumer's objective is to maximise her utility by choosing one commodity bundle from among all the commodity bundles (money income and the prices of the commodities are given to the consumer).   

Posted Date: 10/26/2012 2:07:50 AM | Location : United States







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

Write discussion on Theory of consumer behavior
Your posts are moderated
Related Questions
Not sure how to graph & calculate a retail price of $30 & avg cost $20 assuming that the equation for demand is Q=10,000-9,000P, where P=retail price & Q=# sold per month.Then to s

A type of economy (like in Europe in the Middle Ages) which is primarily agricultural however productive enough to support a class of merchants andartisans. Feudal societies are co

The enzymes are highly specific in nature. During enzymatic reaction the enzyme is so built that it binds to the substrate in a specific manner. The stepwise mechanism of enzyme ca

Suppose scientists discover that eating soybeans prevents cancer and heart disease. What effect would you predict on the price of soybeans?

Criticisms of World trade organisation:   There are critics too of the WTO. It is believed that the WTO will emerge out destructive of biodiversity and people's livelihoods by

Explain how consumers might benefit from the existence of monopolies. While the standard issue of monopolies having higher prices and lower output that competitive markets migh

clarify the opportunity cost theory


Assume you see that two macroeconomic variables are correlated with each other.  But you want to know if there's an underlying or causal relationship between the two variables.  Wo

1. Implicit and explicit revenues minus implicit and explicit costs equals: A. accounting profit. B. economic profit. C. zero profit. D. implicit profit. 2. A business owner mak