Theory of Consumer Choice and Frontiers of Microeconomics, economics homework help

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Economics

Description

Scenario: You have been asked to assist your organization's marketing department to better understand how consumers make economic decisions.

Write a 1,050-word analysis including the following:

  • The impact the theory of consumer choice has on:
    • Demand curves
    • Higher wages
    • Higher interest rates
  • The role asymmetric information has in many economic transactions.
  • The Condorcet Paradox and Arrow's Impossibility Theorem in the political economy.
  • People are not rational in behavior economics.

Cite a minimum of three peer-reviewed sources not including your textbook.

Format your paper consistent with APA guidelines.

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Explanation & Answer

Here you go hun, please let me know if you need any revisions!

1

Running head: THEORY OF CHOICE

Theory of Consumer Choice and Frontiers of Microeconomics
Student’s Name:
Institution:
Professor’s Name:
Course title:
Date:

THEORY OF CHOICE

2

The speculation of purchaser choice is a branch of microeconomics which relates
what is needed to purchasers ask for curves and to employments of use. It shows how
buyers enlarge the yearning of their use as measured by their slants subjects to negative
blemishes on their expenses, by growing utility subject to a customer spending constraint.
As showed by Gans, (2011) Consumption of an individual is managed by different limits
and motivations. The rate of enthusiasm of a particular individual or customer is cleared
up by the; plenitude of the client, cost of the immense and expenses of related items. As
per the law of intrigue which communicates that; the rate of use rises as the cost of good
reduces. If the cost of an average climbs the client will get a kick out of the chance to
move to various alternatives which expenses are for the most part lower than the
considerable.
This will move the demand twist lower. In this way, if the cost of a better than
average cuts down the demand of that agreeable state of mind is high making the client to
go for that awesome. This will lead the demand curve to move...


Anonymous
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