--%>
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 : Slope of a straight line is the ratio

    Explain the slope of a straight line is the ratio of the vertical change to horizontal change between any two points on the line?

    		•
  • Q : Theory of wages according to Adam Smith

    Least consistent along with Adam Smith’s theory of wages would be the suggestion that wages vary positively along with the: (w) effort required to learn skills necessary to accomplish particular types of work. (x) stability of employment and the

    		•
  • Q : Rise in participation of women in the

    Which two of the six reasons listed in the Last Word do you think are the most important in explaining the rise in participation of women in the workplace? Explain your reasoning.

    		•
  • Q : Define Direct and inverse relationships

    Define Direct and inverse relationships?

    		•
  • Q : Initial systematic and popular

    The initial systematic and popular description of capitalism was explained in: (1) Sir Thomas Mun’s England’s Treasure by Foreign Trade. (2) Joseph A. Schumpeter’s Capitalism, Socialism, and Democracy. (3) John Maynard Keynes’

    		•
  • Q : Next Generation Manufacturing Strategy

    This Assignment assesses the following module Learning Outcomes:1. Describe current production concepts and techniques in formulating a manufacturing strategy.2. Discuss the development and implementation of manufacturing strategies in the busi

    		•
  • Q : Describe cost of equity shares Briefly

    Briefly describe cost of equity shares? And also write down way to evaluate the cost of equity shares?

    		•
  • Q : Elucidate the various trade which

    Elucidate the various trade which enacted by governments?

    		•
  • Q : Illustrate major economic flows that

    Illustrate major economic flows that link U.S. with nations.  Provide an example to illustrate each flow.  Explain the relationship between the top and bottom flows.

    		•
  • Q : Determine the lowest average wages

    Consider a huge group of identically smart and strong industrious workers. All else identical, Adam Smith would predict such that the lowest average wages would be earned through the workers who were in the work that: (1) had the leas

    		•