Article summary
The article title is “Microeconomics: Factors of Consumer Decision-Making” by Marc Davis. The article focuses on the choices consumer make before deciding on buying a product or service. Most economists agree that price is the major factor that affects consumer’s decision-making process, but Davis argues that price might not be the only deciding factor. In addition, economics argue that all factors remaining constant, the price of a product is inversely proportional to its demand. Davis focused on the opportunity cost and elasticity as other factors that influence consumer choice and demand for goods or services. Price changes, and demand for a product influences the opportunity cost to consumers. Demand elasticity influences the choice of products or services by consumers depending on the amount of the product or service demanded in relation to the their prices. Moreover, the article introduces extraneous factors and marketing as other elements influencing consumer buying choices. Consumers are driven by cultural, psychological and social factors, which influence their preferences. Generally, Davis provided a wide variety of elements that influence consumer choice and demand for a good or service and their contribution to the field of microeconomics (Davis 1).
How the article links to a subject of microeconomic importance
This article plays a major role in the subject of microeconomics importance in many different ways. Firstly, the author of the article provides a number of elements that influence the consumer buying choice and their importance. The subject of microeconomics involves the study of individuals and small firms in making decisions on how to allocate their limited resources. By providing different factors that influence consumer choice and demand, the article greatly promotes the field of microeconomics. Secondly, the article provides good examples to microeconomic students on the relationship between demand and supply and the respective changes in quantity purchased. Retailers and small business holders will also benefit from this article since it guides them on how to control the supply of commodities to their firms depending on their demand.
Work cited
Davis, Marc. "Microeconomics: Factors of Consumer Decision-Making."Investopedia. N.p., 23
<http://www.investopedia.com/university/
