Micro Economics

MICRO ECONOMICS

Consumption theory or theories of Consumer Behavior

Basically this theory to explain why the request was declined line from left to bottom right? This is the point. The answer is because according to the law of demand, namely sound:

The quantity demanded moves contrary to the price. meaning that consumers will reduce the amount requested furious if haraganya up or otherwise consumers will increase the quantity demanded if the price drops.

And to explain the Consumer Behavior There are 2 approaches:

1. Utility approach is often called the theory Utilities Cardinal, which can also be referred to as Neo Classical Theory.
2. Indifferensial curve approach or theory Utilities Ordinal or also referred to as Theory of curves or lines Indefferensi.

Utilities Utilities approach or theory Cardinal (Theory Neo Classic)

At this approach has the following assumptions:

• Utility can be measured cardinal
• Gossen's laws remain in effect (If the continuous consumption of the goods plus the enjoyment will continuously decrease or MU each additional unit consumed goods will decline)

When viewed in terms of utility, it can be interpreted as follows:

TOTAL UTILITY (TU)

Ie the total number of utility gained from consuming various quantities of goods x. (Utility estimated value itself)

MARGINAL UTILITY (MU)

That is a change up or down in a total utility as a result of the increase or the increase of one unit of goods x consumed. The formula MU = TU2-TU1 / Q2-Q1

AVERAGE UTILITY

Namely total utility divided by the quantity consumed. The formula AU = TU / Q

Utility and some understanding of the above, the most important thing for consumer behavior is MARGINAL UTILITY (MU) to determine the level of consumption of a consumer (Maximum Satisfaction)