 In economic parlance, preference and choice are two distinct but related terms. – I may have desire to buy a particular car, but cannot buy it unless I have economic…

1. The Theory of Consumer Behavior 2. Consumers play an important role in determining the demand for a firm‟s products. They are quality conscious and price sensitive.…

1. The Theory of Consumer Behavior 2. Consumers play an important role in determining the demand for a firm‟s products. They are quality conscious and price sensitive.…

1. 1 Cardinal Utility Approach What is utility? • A want satisfying capacity of a commodity or service. • Utility is found in both useful and harmful goods. • Utility…

UTILITY ANALYSIS In this chapter we will discuss: Choice and Utility Theory Law of Diminishing Marginal Utility Equi-Marginal Utility Substitution and Income Effect Indifference…

Slide 1CHAPTER 3 CONSUMER BEHAVIOUR -The indifference approach Slide 2 Outcomes The role play by consumer preference Model of consumer preference – graphically Role played…