The balance of the consumer - theory and practice

Everyone, as they mature, social adaptation passes, entering in various social, economic and other relations.From a certain age, he can go to shops, retail outlets, becoming the direct buyer, the consumer of a product.The older a person becomes, the wider range of products, which he could theoretically buy.The higher and more stable than its financial position than its various demands and needs, the broader its shopping opportunities.In this regard, the economic studies used a term such as consumer equilibrium.

What is included in this concept?According to the rule, the balance of the consumer - a kind of point of maximum utility of the goods they purchased.For example, a person receives a certain income, expressed in a certain sum of money.Part of this amount he can spend to buy some things, for example, a suit.The suit he needs of a particular size, a certain style, color, of the manufacturer.The price is fixed things - the consumer can not spend on buying more than that allocated from the available funds.And the balance of the consumer is a time when from a variety of goods he will find the one that will meet all his needs, will satisfy both the price and quality of material, sewing, what a thing to sit on it, how easy it will be able to take herout of the store, etc.That is, when the consumer understands that this is the thing - what he needs when he needs to and for how much he needs.By purchasing this product, it will experience the effect of satisfaction on how and what to spend their money, spend their income.

Equilibrium consumer can express a fractional equation, where the numerator will be variable MU, indicating the marginal utility of any of the goods, and the denominator variable P, indicating their price.And then MU1 will refer to as the P1 MU2 - to P2 and so unspecified number of times.

Naturally, the equilibrium conditions of the consumer should have some background:

  1. requires that goods or goods that a person acquires, is compatible with its budget, ieWe were on the so-called budget line;
  2. to market goods and services, material and other goods, the consumer has the ability to find, to choose the most optimal combination of desired.

term equilibrium of the consumer interfaces with another concept - the indifference curve.Under it are those goods, services, etc. that are either generally available to a particular customer, or it does not meet certain requirements, and therefore cause only a partial interest or do not cause any at all.Or it can be shown that a person would want to buy if its budget is consistent with these needs.And if you translate this relationship graph of the function, the two lines, ie,the indifference curve and the budget, will give an accurate picture of how to maximize customer benefit and satisfaction from the purchased goods, etc.a limited part of its budget.Specifically, it is understood as follows: a person has income from a planned budget - whether family, a month or a week - on the situation.As part of the budget items are purchased, even if two or two good, different.Economic planners working in the system of market relations, it is important to calculate the situation in which the consumer will receive the maximum scenario, the utility of these goods acquired during his budget.

Why do it?Firstly, in order to properly organize the classes and ranks of buyers according to their needs and material possibilities.Secondly, to fill the market demand at the moment products and anticipate possible future needs.Finally, to maintain the correct pricing policy, with which the products would be bought up, and manufacturers, intermediaries, etc.will not remain in the loser