3 steps to understanding consumer behavior

Question 1

3 steps to understanding consumer behavior

Answer 1

consumer preference
budget constraints
consumer choices

Question 2

consumer preference

Answer 2

describe the reasons people might prefer one good to another (choices)

Question 3

Budget constraints

Answer 3

consumers have limited income which restrict the quantities of goods they can buy

Question 4

consumer choices

Answer 4

given their preferences & limited income, consumers choose to buy combinations of goods that maximizes their satisfaction.