Consumer theory

In economics, demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time. In economics "demand" for a commodity is not the same thing as "desire" for it. It refers to both the desire to purchase and the ability to pay for a commodity.

thumb|403px|right| Saving is income not spent, or deferred consumption. In economics, a broader definition is any income not used for immediate consumption. Saving also involves reducing expenditures, such as recurring costs.

product that people consume more of as the price rises

academic discipline

economics concept of goods considered interchangeable

Luxury good for which the demand increases as the price increases

activities of individuals, groups, and organizations associated with the purchase, use and disposal of goods and services

empirical observation in economics that as income rises, less is spent on food

metric in economics

combinations of goods and services that a consumer may purchase given current prices within their given income

rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility

people's tendency to prefer avoiding losses to acquiring equivalent gains, a behavior first identified by Amos Tversky and Daniel Kahneman

curve describing how household income varies with household expenditure

economic theory by Paul Samuelson

economic theory that one’s consumption at some time is determined not just by current income but also by expected income in future years (“permanent income“)

social phenomena

economy with one consumer, one producer and two goods

function in economics

effect that the relative price change of a good has on the quantity of the good demanded by a consumer

economic consumer theory

model of economic consumption

economics theorem

Economic metric

lemma

method for calculating price of a utility

decision-making process used by consumers before, during, and after the purchase of a good or service

all bundles a consumer can afford based on various conditions

set of odds and bets which guarantees a profit, regardless of the outcome of the gamble

book

non-fiction work by Paul A. Samuelson

economics term

desire of people to stabilize consumption, in economics

in microeconomics

per-unit costs favor high-grade goods