Author(s): Edmond Dillon
Consumer behavior plays a crucial role in shaping market demand and influencing economic policies. Understanding how individuals make purchasing decisions, what factors drive their preferences, and how businesses respond to these behaviors is essential in microeconomics. This article explores the key concepts of consumer behavior, including utility maximization, price elasticity, and psychological influences. It also examines how businesses and policymakers use consumer behavior insights to optimize pricing strategies, marketing, and economic policies. By understanding demand and preferences, economists and businesses can better predict market trends and design strategies to meet consumer needs effectively.