Consumer choice theory

Consumer choice theory explores how individuals decide to allocate their limited resources—like time and money—across different goods and services to maximize satisfaction or utility. It assumes consumers weigh the benefits and costs of each option, aiming to get the most value for their resources. Factors influencing choices include preferences, prices, and budgets. The theory helps explain patterns in purchasing behavior and how changes in prices or income affect what consumers buy. Ultimately, it provides a framework for understanding decision-making processes behind everyday consumption.