About This Chapter
Microeconomics in Consumer Behavior - Chapter Summary
Learn all about microeconomics in consumer behavior without setting foot in a traditional classroom. Expert instructors have developed fun lessons you can access online to boost your understanding of utility maximization, indifference curves, consumer theories in economics and much more. Review these lessons anytime using any computer or mobile device. Assess your comprehension of lesson concepts by taking multiple-choice quizzes and a chapter exam. When finished with this chapter, you will be ready to do the following:
- Identify the connection between spending and happiness
- Define the consumer in microeconomics
- Discuss utility maximization and why some consumers budget or spend money freely
- Explain the basics of the individual demand curve
- Describe substitution and income effects and how they impact supply and demand
- Differentiate between normal and inferior goods in microeconomics
- Share the meaning of consumer preference assumptions, and describe how they impact consumer choice
- List and describe various consumer theories in economics
- Provide details about budget lines and the rate of transformation in economics
- Exhibit an understanding of indifference curves and how they are impacted by substitutes and complements
- Examine the definition of the marginal rate of substitution
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. Consumer Theories in Economics: Decision Making, Incentives & Preferences
Really, what do we know about consumers? Considering that there are billions around the world, our knowledge is far from perfect. However, economists have a number of ideas and assumptions about consumers that help inform their theories.
3. Consumer Preferences & Choice in Economics
Why do consumers choose to purchase certain products or services? In this lesson, you will learn what consumer preference assumptions are and how they affect consumer choice in economics.
4. 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.
5. 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.
6. 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.
7. 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.
8. Budget Lines & the Rate of Transformation in Economics
Ever wonder why combo deals at pizza places appeal to us so much? They save us money, right? This lesson explains how economists measure the power of one's budget, as well as how businesses can use that information to their advantage.
9. 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.
10. 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.
11. The Connection Between Spending & Happiness
Everyone has heard the phrase money can't buy you happiness - but can it? Recent research show that money can 'buy happiness,' as long as it's used to buy the right things.
12. Required Assignments Reminder
Sorry for the interruption to your course progress! We wanted to make sure you knew this course has a written assignment requirement in order to be completed. Read on to learn where to find these assignments and how to submit them.
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Other chapters within the Marketing 302: Consumer Behavior course
- Introduction to Consumer Behavior
- Factors Influencing Consumer Behavior
- Consumers & the Decision Making Process
- Consumer Behavioral Heuristics
- Consumer Buying Behavior
- Individual Financial Decision-Making
- Experiential Consumption
- Consumer Behavior Market Research
- Influencing Consumer Behavior
- Consumerism & Behavioral Appeals
- Psychology of Price
- Customer Satisfaction
- Required Assignments for Marketing 302: Consumer Behavior
- Studying for Marketing 302