The limits of consumer’s choice

The article discusses the motivation various producers use in order to boot the choice of the customers. With the improvements in technology the consumers have various choices to make regarding the technology, quality, quantity and price of goods and services provided (Lehrer 11). Many services for example air travel services have reduced their prices as a result of competition. Prices are the key factor to determine consumers’ choice for example in the case of natural gas where customers will look at the price.

Using economic knowledge to analysis of the article

Using the knowledge that all goods must have their value the customers are left with no choice but to choose the ones with good values leaving the bad ones behind. For example in the comparison of oranges and apples what matters most to the consumer is the price and how much the customer wants the product that is the value of the product to the consumer (Lehrer 11). The consumers make sure that the value is maximized so as to achieve the marginal utility since the decisions on whether to buy either oranges or apples depend on value and price. Consumers must compare the price with the marginal utility and make sure that the marginal utility is more as per the given dollar.

It is evidently seen that customers will go for the product where they spend less dollar as per the given consumer optimal rule where utility must be maximized since it is seen that consumers will buy little of the products they are used to buying if the prices are increased (Lehrer 11). Consumers will go for the good quality and quantity products which they can easily afford as regarding their opinions. A fall in price means the product will be demanded more thus making the producers profitable.

 

 

 

 

 

 

Works Cited

Lehrer Eli. ‘The Limits of Consumers Choice’, March 14, 2014