Foundations of Consumer Behaviour Theory

Why do consumers buy what they buy, and how do price changes affect their choices? Understanding consumer decision-making is the cornerstone of microeconomics and business strategy. This text-based course guides you through the fundamental theories of consumer behaviour, from utility analysis to demand curves. You will learn how to analyze consumer preferences, construct indifference curves, and apply these concepts to real-world market dynamics. What you'll learn: 1. Understand the core concepts of cardinal and ordinal utility theory. 2. Analyze consumer preferences using indifference curves and budget constraints. 3. Derive individual and market demand curves from consumer choice models. 4. Apply income and substitution effects to predict changes in purchasing patterns. 5. Evaluate modern consumer decision-making concepts, including foundational behavioral economics. You will start with foundational terminology and basic economic assumptions before progressing to graphical models and practical applications of consumer choice. This course is designed for beginners in economics, business students, and anyone curious about market dynamics, with no prior economics background required. Start reading today to unlock the principles behind consumer decision-making.