Block 1: Consumer Behavior Theory of Consumer Behavior
Basic Themes: Different approaches to analyze consumer behavior, but is all approaches, consumer is rational, meaning objective is to maximize utility by choosing one bundle among all other bundles.
Consumer Choice Concerning Utility:
Two types of measurement of utility, 1.Cardinal analysis 2.Ordinal analysis Cardinal theory: In this utility is measured cardinally or numerically in terms of money. Some assumptions,