Eco 365 Week 5 Team Assignment

goods on a higher indifference curve. Higher wages will increase the economy’s spending because the more money consumers make, the more money consumers spend. Consumers are only able to spend as much as they make. If a consumer buys more of a good when his or her income rises, the good is called a normal good. If a consumer buys less of a good when his or herincome rises, the good is called an inferior good. Higher wages would definitely have a better impact on the economy, then not allowing individuals to make what they are worth. The less people make, the less people spend, and the economy is built on spending. Our economy runs on consumers spending money. Another impact on the theory of consumer choice would be higher interest rates. The higher the interest rates the harder it is for consumers purchase and maintain payments of whatever product is in demand. Higher interest rates will also decrease the demand

THEORY OF CONSUMER CHOICE AND FRONTIERS OF2Theory of Consumer Choice and Frontiers of MicroeconomicsVarious types consumer choice theories have been on the brink for many years and comesfrom the thought that consumers act in an optimistic matter of fashion when making economic decisions. Not as difficult as on a strict rational basis, consumer choice considers some of the rejections to theories and switch them accordingly to a more concrete driven and more of an valuable, theory. Rationality in reference to the rational consumer choice theory is not defined the same as the colloquial definition of ‘sanity’, rather is termed on a much narrower spectrum; arational act is one whereby the individual acts to benefit their personal advantage or utility by weighing up potential costs and the associated utility.Demand CurvesMovements along the supply curve can be used as a great theory because when quantity supplies start increase when rental rates increase (roberts & Kranzler, 2015). Movements along the demand curve can occur when quantity demanded increased when rental rates decreased (roberts & Kranzler, 2015). For an example A change in population of Atlantis caused a demand shift to the right. Also, a change in preference for detached homes causes a demand shift to the left. Understanding of the consumer control over supply. In the number of apartments is static; however, the number of apartments in supply at a specific price is dynamic and dependent on revenue or vacancy goals. At home, the number of tests a consumer can run per hour is static;

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