V. Lisovska, V. Stasiuk. Study one of the model of rational consumer behavior in the market.

Abstract

The article investigates the function of consumer utility with a standard budget constraint. In this paper, we study the example of the consumer choice of essential goods and luxury goods, the question of whether demand for essential goods will be limited if the income tends to infinity is investigated. The basis of consumer choice of the buyer is its advantages. The choice of the consumer is determined both by its advantages, and by the price of the chosen product, and also by its income. It is assumed that such a choice brings the buyer the greatest benefit in terms of budget constraints.

In this paper, we consider one of the models of consumer choice, which characterizes the features of the consumer's optimal choice in different situations. At the same time, we believe that one product is cheaper than another. In particular, the question is whether these products are interchangeable (mutually polled), or normal (valuable or inferior) or Giffen goods. It also turns out the question of whether the demand for each product depends on changes in prices for another product.

The function of consumer utility of a certain type is investigated. An example of consumer choice of essential goods and luxury goods is considered. In particular, we consider a consumer set of two products. It is proved that if the income tends to infinity, then the demand for essential goods is limited and tends to a constant value, and the demand for luxury goods increases unlimitedly.

The relationship is proved, which means that at the point of contact of the budget line to its indifference curve, the slopes (angular coefficients) of the lines (the indifference curve and the budget line) are the same. It is shown that the demand for the first product does not depend on the price of the second product, and the demand for the second product depends on the price of the first product.