Unit 4: The Consumer
This unit will focus on the individual consumer and the characteristics that compel a consumer (to choose) to spend income on goods and services. The consumer experiences utility - a measure of satisfaction - with every purchase that he or she makes, and economists measure that utility in order to find a consumer's optimal rate of consumption. The Theory of Demand is derived from the Theory of Consumer Behavior presented in this unit. An individual's demand function can be explained by two approaches that help illustrate personal preferences: utility analysis and indifference analysis. You will explore these concepts more fully in this unit.
Completing this unit should take you approximately 12 hours.