A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Consumers in Perfectly Competitive Markets
The difference between a consumer and an investor depends on the use of a good. Consumers can spend only within their budget, and this is called a budget constraint. The model of supply and demand describes two situations. The first one is a microeconomic model, the second one belongs to the interests of macroeconomics. Consumers have certain characteristics in all markets, whether they are competitive or not. That is to say, market configurations do not affect consumer characteristics. These characteristics are again modeled as assumptions. Variations in price cause the consumer to change the quantity demanded along the aggregate demand curve. This is a movement along the demand curve. Price and quantity are endogenous variables. Changes of income, changes of savings, and changes of preferences are exogenous variable; they lead to shifts of the demand curve.
Consumers in Perfectly Competitive Markets
The difference between a consumer and an investor depends on the use of a good. Consumers can spend only within their budget, and this is called a budget constraint. The model of supply and demand describes two situations. The first one is a microeconomic model, the second one belongs to the interests of macroeconomics. Consumers have certain characteristics in all markets, whether they are competitive or not. That is to say, market configurations do not affect consumer characteristics. These characteristics are again modeled as assumptions. Variations in price cause the consumer to change the quantity demanded along the aggregate demand curve. This is a movement along the demand curve. Price and quantity are endogenous variables. Changes of income, changes of savings, and changes of preferences are exogenous variable; they lead to shifts of the demand curve.
Consumers in Perfectly Competitive Markets
Brockmann, Christian (author)
Construction Microeconomics ; 51-65
2023-02-28
15 pages
Article/Chapter (Book)
Electronic Resource
English
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