--%>
Assignment Help - homework help

Consumer purchase decision

If the price of a good is given, how does a consumer choose/decide as to how much of that good to purchase?

E

Expert

Verified

The Consumer purchases upto point where the marginal utility is equavalent to the price (MU=P). So long as marginal utility is bigger than price, he keeps on purchasing. As he makes purchases MU falls or downs and at a specific quantity of the good MU becomes equavalent to price. Consumer bought upto this point.

   Related Questions in Business Economics

  • Q : Determine the productively efficiency

    To be productively efficient, a country should: (w) maximize the satisfaction attainable from its budget. (x) be concerned only with macroeconomic analysis. (y) concentrate on removing scarcity. (z) maximize the value of output produced through specif

    		•
  • Q : Distinguish between allocative

    Distinguish between allocative efficiency and productive efficiency. Give an illustration of achieving productive, but not allocative, efficiency?

    		•
  • Q : Entertainment tax-Indirect tax Why

    Why entertainment tax comes in indirect tax? Answer: Since its burden can be shifted to others.

    		•
  • Q : Illustrate Qualification in

    Illustrate Qualification in International Trade?

    		•
  • Q : Describe the term Cost of debt Briefly

    Briefly describe the term Cost of debt?

    		•
  • Q : Importance of Price Earnings Ratio

    Write down the importance of Price Earnings Ratio?

    		•
  • Q : Production possibilities curve is a

    How a production possibilities curve is a graphical representation of choices?

    		•
  • Q : Market Apparent program For the

    For the question below, utilize the given information. The market for gizmos is competitive, with an increasing sloping supply curve and a downward sloping demand curve. With no govt. intervention, the equilibrium price is $25 and the equilibrium quantity is 10,000 gi

    		•
  • Q : Generalization and abstraction are

    Explain the statement: “Generalization and abstraction are nearly synonymous.”?

    		•
  • Q : Risky forms of production to gain

    Entrepreneurs: (w) undertake risky forms of production to gain uncertain profits. (x) obtain interest payments for their services. (y) are usually overcompensated for their innovations. (z) receive virtually all their wealth by inheritance.