B. Theory of Consumer’s Behavior

Discover the different types of utility in economics, from form and place to time and possession utilities, and understand how they enhance consumer satisfaction.

Learn about the assumptions of cardinal utility analysis and how it explains consumer choices, despite criticism from economists like Pareto.

Discover how to measure producer’s surplus with a clear example and graph. Understand the surplus income in production beyond the costs.

Discover how the Law of Diminishing Marginal Utility explains the decreasing satisfaction a consumer gets from additional units of a good.

Discover how consumers maximize satisfaction within a budget by understanding the concepts of budget lines, indifference curves, and consumer equilibrium.

Learn about total utility and marginal utility in economics, their formulas, and how they illustrate consumer satisfaction and diminishing returns.

Learn about the law of equi-marginal utility, its assumptions, applications, and limitations, and how it helps consumers maximize satisfaction with limited resources.