Rationality of Choices Made by Individual Consumer

Krzysztof Malaga () and Karolina Sobczak ()
Additional contact information
Krzysztof Malaga: Poznań University of Economics and Business
Karolina Sobczak: Poznań University of Economics and Business

Chapter Chapter 2 in Microeconomics, 2022, pp 9-111 from Springer

Abstract: Abstract This chapter presents basics concepts of the consumer theory, such as the relation of consumer preference, consumption bundleConsumption bundle, utility function, Marshallian and Hicksian demand functionsFunctionof demandof compensated demand (Hicksian demand function). The main part of the chapter is a description of problems of consumption utility maximizationProblem ofutility maximization and consumer’s expenditure minimizationProblem ofconsumer’s expenditure minimization, in the static as well as in the dynamic approach. The reader learns how to describe and analyse a consumer’s choice ofOptimalconsumption bundle optimal consumption bundleConsumption bundle when consumer goods are substituteConsumer goodssubstitute goods or complementaryConsumer goodscomplementary to each other. The analysis of demand’s reaction to changes in a good’s price or in a consumer’s income shows how to classify consumer goods and how to incorporate these changes jointly in the Slutsky equationEquationSlutsky equation.

Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-031-10554-8_2

Ordering information: This item can be ordered from
http://www.springer.com/9783031105548

DOI: 10.1007/978-3-031-10554-8_2

Access Statistics for this chapter

More chapters in Springer Texts in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().