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

Demand and supply, draw the demand curve,when there is rise in the price of...

draw the demand curve,when there is rise in the price of a product on the demand of the product

Production possibilities curve, how to look a graph in different kind of pp...

how to look a graph in different kind of ppc in the graph when we see

Cost, #question.theories of cost

#question.theories of cost

Need help, #queA monopolist has a constant marginal and average cost of $10...

#queA monopolist has a constant marginal and average cost of $10 and faces a demand curve Of Qd = 1000-10P. Marginal revenue is given by MR= 1000-1/5Q. stion..

Returns to scale in carpet industry, Returns to Scale in Carpet Industry ...

Returns to Scale in Carpet Industry *  The carpet industry has grown from the small industry to large industry with some large firms. *  Question - Can the growth be illu

Obtain an expression for the allowed rotational energies, chemistry assignm...

chemistry assignments ,  obtain an expression for the allowed rotational energies of  N 2  molecules. The equilibrium bond length of the  N 2  molecules is  109.8 pm .

Production possibility curve, construct your own version of a production po...

construct your own version of a production possibility curve and use it to explain scarcity, opportunity cost and choice

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