Consumer’s choice is the ability of a given person or simply the buyer of a given good or service to determine what to use or purchase concerning products and services (Mankiw, 2014). There are several reasons behind any consumption habit by an individual. These include the prices of a given commodity, the level of income of the consumer and the utility as well as the technology at hand that characterizes the dynamics notable in the individual’s mode of purchase and use of a given commodity (Mankiw, 2014).
According to Taylor& Greenlaw (2014), change in the prices of a product directly leads to a change in consumption habits. The reduction in a price of a given commodity leads to an increase in the purchase of the commodity by the consumer while price increase leads to the decline in the number of the purchased product (Taylor & Greenlaw, 2014). The concept of the utility is characterized by an individual’s purchase power of given product though the marginal utility of any particular product rises with the reduction in the price of the same commodity.
The level of income of the consumers further dictates the consumption habits with higher levels characterized by an increase in the quantity of the product purchased (Gans, King & Mankiw, 2011). Relative utility of a given commodity increases with the increasing levels of income since the individual develops increased purchasing power of a particular product.
In the labor market, employees or workers express their interests for jobs while the employers show their demand for an increasing number of laborers in the production, manufacturing or in selling of the products (Mankiw,2014). The labor market is usually dominated by two forces, including demand and supply of the individual workers in the industries. The higher the demand of manpower in the market the higher the salary and wage requirements for the employees. Therefore the concept of man power is directly proportional to forces of demand and supply(Mankiw, 2014). On the other hand, the concept of technology is indirectly proportional to labor market since the more advanced technology is in the labor market, the lower the number of employees demanded in the labor market (Mankiw, 2014).
Finally, technology plays a significant role in decision making by the consumer on what to purchase and hence the consumption patterns. When the new technology, for instance, is employed in the delivery of a product to consumers, more consumers are influenced into purchasing of such product in the market (Taylor & Greenlaw, 2014). Technology gives more choices to the customers hence an increase in consumption of a particular product. For example, with the current technology at hand, several entrepreneurs have resorted to the online marketing portals that have shown a marked increase in the consumption of products such as Perio toothbrushes sold the highest as opposed to the past warehoused products. This online markets including Amazon have led to the increase in the consumption behavior hence with impact to the businesses as well as the consumers who can easily access the products online.
References
Gans, J. S., King, S. P., & Mankiw, N. G. (2011). Principles of microeconomics. South Melbourne, Vic: Cengage Learning.
Mankiw, G. N. (2014). Principles of microeconomics.United States: CENGAGE Learning Custom Publishing.
Taylor, T., & Greenlaw, S. A. (2014). Principles of Macroeconomics. United States: Textbook Media.
