Considerations concerning cosumer behaviour theory

Abstract

The consumer`s scale of preference, which is the starting point of the theory of consumer behaviour can be ilustrated very clearly by indifference curves. The point where budget line meets the highest possible indifference curve compatible with the consumer`s income and prices represents the state of equilibrum for the consumer. Consumer behaviuor theory gains still more practical importance if consumer preferences are subjected to detailed psychological and sociological analysis.indifference curve, marginal utility, budget line, consumer`s equilibrum, individual demand curve, Engel curve, market demand curve, psychological and social factors of consumer behaviuor