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Introduction to Theory of consumer behaviour, CBSE Class 12 Economics Video Lecture
FAQs on Introduction to Theory of consumer behaviour, CBSE Class 12 Economics Video Lecture
| 1. What is the theory of consumer behavior? |  |
Ans. The theory of consumer behavior is an economic concept that explains how individuals make decisions regarding the consumption of goods and services. It is based on the assumption that consumers aim to maximize their satisfaction or utility while considering their limited income and the prices of various goods and services. This theory analyzes consumer preferences, budget constraints, and the concept of marginal utility to understand consumer behavior.
| 2. What factors influence consumer behavior? | |
Ans. Several factors influence consumer behavior, including personal preferences, income levels, prices of goods and services, advertising and marketing strategies, social and cultural factors, and the availability of substitutes. Personal preferences and tastes play a significant role as consumers tend to choose goods and services that align with their desires. Income levels determine the affordability of products, and prices affect the demand for goods. Advertising and marketing strategies can influence consumer choices, while social and cultural factors can shape their preferences. The presence of substitutes can also impact consumer behavior.
| 3. How does the theory of consumer behavior explain consumer choices? | |
Ans. The theory of consumer behavior explains that consumers make choices based on their utility or satisfaction derived from consuming goods and services. It suggests that consumers aim to maximize their overall satisfaction within their limited budget. Consumers evaluate the marginal utility, which is the additional satisfaction gained from consuming one more unit of a good, and compare it with the price of the good. If the marginal utility exceeds the price, consumers are likely to purchase the good. This theory helps understand how consumers allocate their income among different goods to maximize their utility.
| 4. What is the role of budget constraints in consumer behavior? | |
Ans. Budget constraints play a crucial role in consumer behavior. Consumers have limited income, and they must allocate their budget among various goods and services. The theory of consumer behavior suggests that consumers aim to maximize their satisfaction within their budget constraints. Consumers evaluate the utility and price of different goods and make choices accordingly. Budget constraints influence the quantity and quality of goods consumed and can often lead to trade-offs between different goods. Consumers with higher budgets have more freedom to choose a wider range of goods, while those with lower budgets may have to prioritize their purchases.
| 5. How does consumer behavior impact the economy? | |
Ans. Consumer behavior has a significant impact on the economy as it drives the demand for goods and services. When consumers increase their spending, it leads to a higher demand for products, which, in turn, stimulates production and economic growth. Consumer behavior also influences pricing decisions by businesses. If consumers have a high demand for a particular product, businesses may increase the price. Additionally, consumer behavior can also be affected by economic factors such as inflation, unemployment, and interest rates. Understanding consumer behavior helps businesses and policymakers make informed decisions to ensure a stable and prosperous economy.
Text Transcript from Video
in this video we will discuss about
consumer behavior now what do you mean
by consumer behavior consumer behavior
simply means how a consumer would behave
in the market he gets many products in
the market but all the products do not
give him the same level of satisfaction
all the products are not priced at the
same level so it creates a difficulty
for him to choose as to which products
he should purchase and which products he
should avoid so in this chapter we study
as to how a consumer decides as to what
products he should purchase what
quantity he should purchase and at what
price I just give you just about what
about the topics that we'll be covering
first one is the theory of consumer
behavior then we study utility analysis
under utility analysis we will study in
detail about marginal utility and to
study marginal utility we need to study
in detail about two laws those two laws
are law of diminishing marginal utility
and the law of equal marginal utility
and then we come to consumers surplus
and finally we will do an analysis on
the indifference curve under
indifference curve will be seen what our
indifference curves and what does the
budget line or the price lane and
finally we come out with the consumers
equilibrium so let's get started
theory of consumer behavior as I have
already told you theory of consumer
behavior endeavors
to know how a consumer would behave in
the market how a consumer would buy
different goods at different prices what
is the quantity of the goods that will
buy second how a consumer locates his
income to purchase different commodities
or different goods these are the two
things that we studied in this chapter
consumer behavior now what do you mean
by consumer behavior consumer behavior
simply means how a consumer would behave
in the market he gets many products in
the market but all the products do not
give him the same level of satisfaction
all the products are not priced at the
same level so it creates a difficulty
for him to choose as to which products
he should purchase and which products he
should avoid so in this chapter we study
as to how a consumer decides as to what
products he should purchase what
quantity he should purchase and at what
price I just give you just about what
about the topics that we'll be covering
first one is the theory of consumer
behavior then we study utility analysis
under utility analysis we will study in
detail about marginal utility and to
study marginal utility we need to study
in detail about two laws those two laws
are law of diminishing marginal utility
and the law of equal marginal utility
and then we come to consumers surplus
and finally we will do an analysis on
the indifference curve under
indifference curve will be seen what our
indifference curves and what does the
budget line or the price lane and
finally we come out with the consumers
equilibrium so let's get started
theory of consumer behavior as I have
already told you theory of consumer
behavior endeavors
to know how a consumer would behave in
the market how a consumer would buy
different goods at different prices what
is the quantity of the goods that will
buy second how a consumer locates his
income to purchase different commodities
or different goods these are the two
things that we studied in this chapter
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