Topics
Consumer Behaviour
The concept of consumer behavior in economics refers to how consumers make decisions about what to buy, and how much they are willing to pay for different goods and services. In simple terms, it involves figuring out how much a consumer values each good and how their preferences change as their income or the price of the good changes. There are two main models economists use to try to understand consumer behavior: the utility maximization model and the indifference curve model. The utility maximization model assumes that consumers will try to maximize their utility, or satisfaction, by choosing the best combination of goods given their budget.
