Theory of Consumer Behavior and Demand in Microeconomics

How do consumers make choices when faced with limited budgets? Understanding consumer behavior is the foundation of microeconomics, shaping how businesses price products and how governments design policies. This text-based course guides you through the essential economic models that explain consumer decision-making and market demand. By reading and working through practical scenarios, you will transition from a beginner to confidently analyzing consumer choices, utility maximization, and demand elasticity. What you'll learn: 1. Understand foundational economic concepts including scarcity, choice, and utility theory. 2. Analyze consumer equilibrium using utility analysis and indifference curves. 3. Derive individual and market demand curves from consumer preferences and budget constraints. 4. Calculate price, income, and cross-elasticity of demand. 5. Explore modern behavioral economics concepts that challenge classical consumer assumptions. 6. Apply demand theory to real-world pricing scenarios. This course begins with key terminology and foundational definitions before progressing to consumer equilibrium and the mechanics of demand. It is designed for beginners and students preparing for standard economics curricula, with no prior background required. Start building your foundational knowledge of microeconomics today.