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Q: Explain the cardinal and ordinal utility approach ?
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Q: Differentiate between cardinal and ordinal approach to consumer behaviour
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- Explain the cardinal and ordinal utility approach ?Give examples of several real-world phenomena that can be explained by applying the theory of consumer behavior.Consumers choice theory assumes that consumer are rational but we observe a person behaving differently in apparently similar situations. Is it realistic to think that we account for rational behaviour in every situation?
- Critically discuss whether maximising behaviour or satisficing behaviour is the best way to explain consumer behaviourExplain how the consumer decides how many units of a good to consume by explaining the assumptions of the cardinal approach.With the help of illustrations, show how the consumer attains equilibrium under the indifference curve approach ., use the knowledge of micro economics and show how the demand curve is derived under the cardinal theory approach
- Do you think the model of consumer equilibrium describes how people really make the decisions on what to order to in a restaurant to maximize their utility? Is there a better model to measure consumer choice?There are two expantions for preference reversals.(In Behavior Economics) -Scale Congruence -Prominence Could you explain about them easily?Explain how non-convexity in choice can result in multiple optimal choices. Provide a graphical solution.
- How does the principle of duality influence decision-making in economics?In what way is criminal behavior similar to consumer behavior? Why do most people obtain goods via legal behavior as opposed to illegal behavior? What are society’s main options for reducing illegal behavior?Could you please write your own words, not copy-paste or plagiarism issues Question: Discuss the differences between social and market norms(behavioral economics) and what happens when these norms collide. How can an understanding of these two norms help businesses?