Economic behavior

Economic behavior - particular want or end. Once the choice...

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Economic behavior When one behaves economically he has to make a choice and decide his preference while spending his limited resources . The satisfaction of wants is an objective of economic activity. A person with a limited income of $10 may have multiple wants. He may want to spend on food, garments, entertainment , cosmetics etc. But his limited income does not allow him to acquire all these. Therefore he has to make a choice about one or more of his needs which can be satisfied immediately. The decision is rationally based on the urgency and importance of a
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Unformatted text preview: particular want or end. Once the choice is made the necessary goods are bought and consumed. The act of consumption brings satisfaction or utility to a consumer. Some goods like fruit or snacks can be consumed only once but durable goods can be used repeatedly. A wristwatch , garments, furniture etc. are durable goods. When in use they are considered to be consumed. This is because of the fact that consumption of a good leads to reduction or destruction of its utility. What can be consumed is the utility of a good....
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This note was uploaded on 11/26/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.

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