Consumer Choice
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Consumer choice is a theory of microeconomics that relates Preference (economics)|preferences for consumption good (economics)|goods and services to consumption expenditures and ultimately to supply and demand|consumer demand curves. The link between personal preferences, consumption, and the demand curve is one of the most closely studied relations in economics. Consumer choice theory is a way of analyzing how consumers may achieve equilibrium (economics)|equilibrium between preferences and expenditures by maximizing utility as subject to consumer budget constraints.Preferences are the desires by each individual for the consumption of goods and services that translate into choices based on income or wealth#Economic analysis|wealth for purchases of goods and services to be combined with the consumer's time to define consumption activities. Consumption is separated from production, logically, because two different consumers are involved. In the first case consumption is by the primary...
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