Theory of consumer behaviour, Managerial Economics

Assignment Help:

Theory of Consumer Behaviour

Through the study of theory of consumer behaviour we can be able to explain why consumers buy more at a lower price than at a higher price or put differently why individuals or households spend their money as they do. We shall assume that the consumer is rational and aims at maximising his satisfaction, so given his income he consumes that basket of goods and services which produces maximum satisfaction.  Two major theories explain the behaviour of the consumer, neither presents a totally complete picture.  The first approach is the marginal utility, or cardinalist approach.  The second approach centres on the indifference curve analysis or the ordinalist approach.


Related Discussions:- Theory of consumer behaviour

Rationing of credit, Rationing of Credit As an instrument of credit con...

Rationing of Credit As an instrument of credit control credit rationing was first employment by the bank of England toward the end of the eighteenth century when it imposed a c

Price under monopoly, The aim of monopolist is to maximise profit therefore...

The aim of monopolist is to maximise profit therefore; he would produce that level of output and charge that price which gives him maximum profits. He would be in equilibrium at th

Demand, explain the law of demand

explain the law of demand

Enumerate the scope of managerial economics, Enumerate the Scope of manager...

Enumerate the Scope of managerial economics The scope of managerial economics contains following subjects:  1. The Theory of demand 2. The Theory of production 3. The

Monopolistic versus perfect competition, firms both in monopolistic and per...

firms both in monopolistic and perfect competition tend to make normal profits but why do they criticize only monopolistic competition

Importance of demand forecast, Management Decisions: An effective demand f...

Management Decisions: An effective demand forecast assists the management to take suitable steps in factors which are relevant to decision making like plant capacity, raw-material

What is the nature of commodity, Q. What is the Nature of Commodity ? T...

Q. What is the Nature of Commodity ? The nature of a commodity as well has an effect on the price elasticity of its demand. Commodities can be characterised ascomforts, luxurie

Monopolist advertise, A  monopolist has two types of customers. There are 1...

A  monopolist has two types of customers. There are 100 of Type A, who will every pay up to $10 for a single unit of the good, and 50 of Type B, who will every pay up to $8. Neithe

Ans, State the difficulties in the measurement of profit.

State the difficulties in the measurement of profit.

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