Theory of consumer behavior, Microeconomics

Assignment Help:

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).   


Related Discussions:- Theory of consumer behavior

Money demand function, what are the values of real money supply and the cur...

what are the values of real money supply and the current price level

What is gross domestic product per capita, Q. What is Gross Domestic Produc...

Q. What is Gross Domestic Product Per Capita? Gross Domestic Product, Per Capita: Level of GDP divided by the population of a region or country. Changes in real GDP per capita

Traditional economy , what is traditional economy 2 features of traditional...

what is traditional economy 2 features of traditional economy

Marginal social benefit, Consider the following information relating to the...

Consider the following information relating to the pulp market.   Demand     Supply   Output(tonnes/ da

Common property regime , Normal 0 false false false EN-...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Long run equilibrium - perfect competition, Long run equilibrium - Perfect ...

Long run equilibrium - Perfect competition: In the long-run, on the other hand, the firm in perfect competition is making normal profit or zero economic profit as shown in Fig

Asymmetric information - insurance markets, Q. Asymmetric Information - Ins...

Q. Asymmetric Information - Insurance Markets? In the United States, health insurance is usually provided for employees through contracts between the insurance company and thei

Supply, #1 explain with the aid of diagram the effect of an increase in dem...

#1 explain with the aid of diagram the effect of an increase in demand for palm oil on the equilibrum position for palm kernel

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd