Economics: Consummer Behaviors

563 Words2 Pages

As a part of a human life cycle, people consume in order to live. Consumer behavior is one of the main topics in economics. It is an important field of study because consumers are part of the economy and it plays a huge role in contributing to a country’s economic growth. In the recent years, it is observed that few studies have been made in the “demand side of economic activities” compared to the supply side (Nelson and Consoli, 2010). However, it is equally important to know the consumption behavior of consumers especially for policy-makers. The unlimited needs, wants, choice and preferences of individuals are the things that they consume. Although some of these things can be acquired free of charge, most of it still requires the consumer to pay for it. Today, everyone has a source of income, one way or another. These incomes are used to spend for their consumptions. Incomes serve as their motivation to work because they know that having higher income would mean that they could afford to buy their needs and wants. However, how does one allocate his/her income? According to Keynes (...

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