There’s just one slight problem: There are no laws of economics. Because the “laws of economics” say the supply of money will cause inflation if overall output stays the same.

Consumption and Management discovers and elaborates three rules: natural economic law, market regulation law, and the law of macro-economic control.

Understanding the Law of Supply and Demand The law of supply and demand, one of the most basic economic laws, ties into almost all economic principles in some way.

Broadly speaking, you need to be familiar with 20 essential economic laws, listed here in chronological order. They form the overall legal framework of the Indian business environment. The Indian Contract Act (1872): Established the framework within which contracts can be executed and enforced.

Alfred Marshall

The law states that a consumer should spend his limited income on different commodities in such a way that the last rupee spent on each commodity yield him equal marginal utility in order to get maximum satisfaction. …

Consumer equilibrium is a point at which a consumer’s derived utility from a commodity is at its maximum, given a fixed level of income and price of that commodity. A rational consumer would not deviate from this point.

There are three conditions for consumer’s equilibrium:

• (1) The Budget line should be Tangent to the Indifference Curve.
• (2) At the point of Equilibrium the Slope of the Indifference Curve and of the Budget Line should be the same.
• (3) Indifference curve should be Convex to the Origin.

For example, the consumer receives 24 utils from consuming the first unit of good 1, and the price of good 1 is $2. Hence, the ratio of the marginal utility of the first unit of good 1 to the price of good 1 is 12. The consumer’s equilibrium choice is to purchase 2 units of good 1 and 1 unit of good 2.

A consumer is one who consumes goods and services for the satisfaction of his wants.

Consumer behaviour is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to the actions of the consumers in the marketplace and the underlying motives for those actions.

There are four main types of consumer behavior:

• Complex buying behavior. This type of behavior is encountered when consumers are buying an expensive, infrequently bought product.
• Dissonance-reducing buying behavior.
• Habitual buying behavior.
• Variety seeking behavior.

Example- A study of consumer behaviour will reveal what kind of consumers buy computers, would they buy for home and personal use or for office, what features they look for, what benefit do they seek including post-purchase service, how much they are willing to pay, how many they are likely to buy, are they waiting for …

“Consumer behavior is the actions and the decision processes of people who purchase goods and services for personal consumption” – according to Engel, Blackwell, and Mansard, Consumer buying behavior refers to the study of customers and how they behave while deciding to buy a product that satisfies their needs.

Consumer behaviour theory is the study of how people make decisions when they purchase, helping businesses and marketers capitalise on these behaviours by predicting how and when a consumer will make a purchase.

To Provide better and all round protection to consumer. To Provide machinery for the speedy redressal of the grievances. To Create framework for consumers to seek redressal. To Provide rights to consumers.

Martin Fishbein

Consumer perspective is a way of looking at life through eyes that have been categorised as ‘mad’ or distressed enough to require intervention from a mental health professional. Such a perspective is acquired as a result of receiving, or being unable to receive when you wish to, services in the mental health system.