Consumer behaviour theories

Let us learn Marshalls' Diminishing marginal utility theory, Hickss' and Allens' Indifference curve analysis and Samuelsons' theory of revealed preferences here.
Diminishing marginal utility theory
According to this theory, Marginal utility decreases, if consumption increases. As the utility of a product starts decreasing, people want the price to be reduced, if not the demand gets reduced.

Indifference curve analysis
Professors Hicks and Allen deals with 2 concepts.
Income effect and substitution effect.
When the price increases the income remaining constant, the purchasing power decreases as a result the demand also decreases.
When the price of the commodity in a market which has substitutes increases, then the demand of the particular commodity is shifted to other substitutes.
Theory of revealed preferences
Samuelson highlights peoples' preferences to buy more amount of commodity at a lower price and less amount of commodity at higher prices.

The theories, mentioned above if given under one heading will be known as 'Theories on consumer behaviour'.

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