Essays on Condorcet

The Impact of the Theory of the Consumer Choice on Demand Curves, Higher Wages and Higher Interest Rates

The theory of consumer behavior shows how the choice is affected by the price of goods, income and preferences, and the way buyers maximize their net gains from the purchase of goods and services. The price change of a good affects the consumer demand structure in two ways. Any change in the price results in the appearance of the income and substitution effects, as it changes the amount of available goods and their relative prices. The above effects are consumer reaction to changes in relative prices and real income (Mankiw, 2014). The substitution effect is the change in the ...

Overview

The theory of consumer choice is interested in the manner through which make decisions on the amount of money that they can commit on their preferences considering their budget constraints (Levin & Milgrom, 2004). All consumers have a budget past which they cannot spend. This budget is influenced by the wealth and income of the individual consumers. The budgets erect constraints on the ability of consumers to acquire their preferences. The consumer choice theory informs the choices a consumer will make considering the price of a certain good or service and his income. The exploration of the consumer choice theory ...

1.Take Notes on Malthus's social concern the struggle between workers, landlords, and capitalists? Malthus's first writings were in the unrest position of the workers against the landlords, proprietors, and capitalists. The economic system was allowing the wealthy people to receive the most of the revenue, and the labor was in the uncomfortable conditions. Malthus developed his law of population which defended the rich people. According to his law of population, the wealthy groups could get the power in the economy, and that was a natural process in the economy. He was aware of the social welfare issues. He defended ...