--%>
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 : What are the Functions of money Explain

    Explain in short the functions of money? Answer: (A) Medium of exchange: Money can be employed to make payments for all transactions of services and goods.

    		•
  • Q : How government might manipulate its

    Explain how government might manipulate its expenditures and tax revenues to reduce unemployment?

    		•
  • Q : Explain the following from Hull Explain

    Explain the following from Hull, England a news dispatch: “The fish market here slumped today to what local commentators called a ‘disastrous level’—all because of a shortage of potatoes”.

    		•
  • Q : Explain the term leverages Briefly

    Briefly explain the term leverages?

    		•
  • Q : Economic efficiency enhancement as

    Transaction costs are decreased and economic efficiency is enhanced by: (1) long-term wage and price controls. (2) monopolies which cooperate with central planners. (3) blacklists and yellow dog contracts. (4) bureaucratic tendencies

    		•
  • Q : Explain the cause of Trade barriers

    Explain the cause of Trade barriers?

    		•
  • Q : Guardian implies that there really is

    Evaluate and explain the statements: “Market is its own guardian implies that there really is an invisible hand or taskmaster that watches over the decision makers in the marketplace”

    		•
  • Q : Best society according to Utilitarianism

    Utilitarianism proposes such that the finest society is one which gives the: (w) fundamental goods to meet people’s requirements. (x) greatest happiness for the maximum number of people. (y) exact measurement of utility and disutility. (d) highe

    		•
  • Q : Price competition My friend can't

    My friend can't succeed to get the answer of this question. Give me solution of this question. From a heterodox perspective, why does destructive price competition drive enterprises to set up market institutions which would abolish price competition?

    		•
  • Q : Our junior high school serves a

    Comment on the following statement from a newspaper article:  “Our junior high school serves a splendid hot meal for $1 without costing the taxpayers anything, thanks in part to a government subsidy.”

    		•