Theory of demand, Microeconomics

THEORY OF DEMAND:

The  consumer behaviour under indifferencecurve approach where it is assumed that the consumer possesses a utilityfunction. The next most important theory that deals with consumer behaviouris the theory of revealed preference. This theory allows prediction of theconsumer's behaviour without specification of an explicit utility function,provided that she conforms to some simple axioms. In addition, the existenceand nature of her utility function can be deduced from her observed choicesamong commodity bundles. 

we move on to more realistic aspect of consumerbehaviour namely consumer choice involving risk, where there is probabilityof every event. Finally, we present the indirect utility function and its relatedtheorems.  

Posted Date: 10/26/2012 3:30:21 AM | Location : United States







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

Write discussion on Theory of demand
Your posts are moderated
Related Questions
why is the concept of elasticity crucial to the study of economics?

why does gap between the ATC curve and the AVC curve decreases as the level of output increases

price of laptop increases by 20% and there is a 40% drop in the quantity demanded?

Diffrence between price and Income elasticity of demand: Own price elasticity of demand is the degree of responsiveness of the quantity demanded of a commodity to a change in

Define the Policies of Education Universal education--particularly universal education of girls--pays a two-fold benefit. Investments are more likely to be productive with a be


net preparation ranjna baghel


Comparison with Our Targets : A proper objective assessment of our performance can be carried out only when we juxtapose our current achievements with: (i) planned or targeted