What is the Theory of Consumer Behaviour?
Consumer theory is a concept that deals with how people choose to spend their money, provide their tendency and budget restrictions. As a part of microeconomics, consumer theory manifests how people make choices, provide restraints, their income, and the prices of commodities and services.
The customer has to determine how to spend his or her earnings on different commodities. However, a few renowned economists have named this as the issue of choice. Usually, every customer wants to get a blend of commodities that gives him/her utmost happiness.
This relies upon the preferences of the customer and what the customer can manage to purchase. The likes of the customers are also known as preferences. Thus, what the customer can manage to purchase relies on the prices of the commodities and the earnings of the customer.
This concept is about the theory of consumer behaviour. To explore more about the other concepts of commerce, stay tuned to BYJU’S.
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