Theory Of Consumer Behaviour

What is Theory of Consumer Behaviour?

Consumer theory is the concept that deals with how people determine to expend their money, provided their proclivity and budget restrictions. A part of microeconomics, consumer theory manifests how people make choices, provided restrains, their income and the prices of commodities and services.

The customer has to determine how to expend his or her earnings on different commodities. However, a few renowned economists have named this the issue of choice. Usually, any customer would want to get a blend of commodities that gives him or her utmost content. This relies upon the preferences of the customer and what the customer can manage to purchase. The ‘likes’ of the customers are also named ‘preferences’. And what the customer can manage to purchase, certainly relies on prices of the commodities and the earnings of the customer.

This is the detailed elucidation of the concept Theory of Consumer Behaviour. To explore more about the other Commerce concepts, stay tuned to BYJU’S.

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