About This Chapter
Georgia Milestones: Consumer Behavior & Microeconomics
This chapter will help you go over consumer behavior and microeconomics as you prepare to take the Georgia Milestones Economics/ Business/ Free Enterprise EOC exam. You can use our lessons to make sure you're familiar with:
- The definition of a consumer in microeconomics
- Utility maximization and assumptions about it
- Individual demand, market demand and indifference curves
- Normal and inferior goods
- Substitution and the marginal rate of substitution
You can view our engaging video lessons to familiarize yourself with this subject. Each video features a timeline that allows you to go directly to the information you want to review, as well as a transcript that you can read.
1. Who Is the Consumer in Microeconomics?
Who is the consumer in microeconomics? In this lesson, you will learn the definition of a consumer and the microeconomic assumption that explains their decision-making process.
2. Utility Maximization: Budget Constraints & Consumer Choice
Do you spend your money rationally, or just throw it up in the air? This lesson explains the processes that consumers go through to spend their money and why for some people throwing money in the air with abandon works best.
3. Understanding the Individual Demand Curve
Want to see how economics affects the decisions you make on a daily basis? This lesson on the individual demand curve helps to explain why we fall for marked-down holiday candy.
4. Factors that Affect the Market Demand Curve
Just like any other demand curve, there are a number of factors that can affect the market demand curve. This lesson introduces many of them and explains how difficult it can be in real life to actually measure equilibrium.
5. Substitution & Income Effects: Impacts on Supply & Demand
Have you ever changed your mind about buying something because they raised the price? Or maybe opted for an upgrade because you got a raise? This lesson explains the substitution and income effects, the terms economists use to describe those actions.
6. Normal & Inferior Goods in Microeconomics
A consumer's income affects the types of products that they purchase. In this lesson, you will learn the definition of and differences between normal and inferior goods in microeconomics and how they affect consumer demand.
7. Indifference Curves: Use & Impact in Economics
Like it or not, the demand of a given good is often influenced by the demand of other goods. Sometimes this is a good thing for the good in question, other times it's not. Indifference curves help economists figure out which is the case.
8. Marginal Rate of Substitution: Definition, Formula & Examples
The marginal rate of substitution helps firms figure out just how much substitution of goods they can get away with until consumers have had enough. From toilet paper to beer, this has an effect on everything.
9. The Indifference Curve for Substitutes & Complements in Economics
Goods in a given economy do not exist in a vacuum. In this lesson, we will look at how substitutes and complements affect the indifference curve, helping economists figure out how prices ripple through the economy.
10. Economics Assumptions about the Maximization of Utility
What can we assume about producers wanting to maximize utility? For starters, we must assume that they want to maximize utility! This lesson explains why that is so important and how producers do it.
Earning College Credit
Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.
To learn more, visit our Earning Credit Page
Transferring credit to the school of your choice
Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.
Other chapters within the Georgia Milestones - Economics/Business/Free Enterprise EOC: Test Prep & Practice course
- Georgia Milestones: Introduction to Economics
- Georgia Milestones: Scarcity, Choice & the Production Possibilities Curve
- Georgia Milestones: Supply & Demand
- Georgia Milestones: Economic Interdependency
- Georgia Milestones: Economic Price & Income Elasticity
- Georgia Milestones: Types of Economic Systems
- Georgia Milestones: Government's Role in Economic Systems
- Georgia Milestones: Market Structures in the US Economy
- Georgia Milestones: Business Organizations
- Georgia Milestones: Making Business Decisions
- Georgia Milestones: Understanding Production in Microeconomics
- Georgia Milestones: Comparative vs. Absolute Advantage
- Georgia Milestones: Macroeconomic Equilibrium
- Georgia Milestones: Scarce Economic Resource Markets
- Georgia Milestones: Measuring Economic Activity
- Georgia Milestones: Economic Growth & Productivity
- Georgia Milestones: Inflation Measurement & Adjustment
- Georgia Milestones: Understanding Unemployment
- Georgia Milestones: Aggregate Supply & Demand
- Georgia Milestones: Fiscal & Monetary Policies
- Georgia Milestones: Expansionary & Contractionary Policies
- Georgia Milestones: Money, Banking & Financial Markets
- Georgia Milestones: Central Bank & the Money Supply
- Georgia Milestones: Foreign Exchange & the Balance of Payments
- Georgia Milestones: Trade Barriers & Regulations
- Georgia Milestones: Consumer Decision Making
- Georgia Milestones: Savings & Investments
- Georgia Milestones: Credit & Interest Rates
- Georgia Milestones: Insurance
- Georgia Milestones: Taxation
- Georgia Milestones - Economics/Business/Free Enterprise EOC Flashcards