Law "customer is always right" in the light of market relations can be paraphrased somewhat differently: "customer is always right."That is, by and large, market production is focused on customer needs.Their needs, interests and needs determine which products, how many, what kind of modification and even how technology should be issued manufacturers.In turn, the market also dictates certain rights and rules.This process dialectically interconnected and conditioned.But it is the consumer can be considered "last resort" becauseit was he who own funds assesses the results of operations of the market.
With consumer choice on the part of those or other goods linked to the so-called total utility of a product.We buy things, household appliances, food products in order to satisfy their needs and requirements.From one we enjoy shopping, while others need to satisfy your hunger, and others - provide comfort and cosiness in the house, etc.
Almost every individual in society is not available in a particular area of work, services and production.Some of their work receive moral and material satisfaction.Others are not completely satisfied with the use of their forces, knowledge, skills or adequate payment for their services and labor.
total utility goods purchased by us is the degree of satisfaction of our needs that we get when using the products, services, or when engaging in an activity.
useful is quite a subjective category.After all, what one seems to quality, worthy of attention, for the other can not be of any value.Alternatively, the value at a given time, under certain circumstances, for a benefit ceases to be such a change of circumstances.For example, when a person is very hungry for it and stale bread more expensive than gold.But as saturation, bread loses for him its absolute value, and the fore other benefits.
The economy vary total and marginal utility.Marginal utility - Additionally, it adds each new consumed the equivalent benefit.If we have two TVs, when buying a few more of our pleasure and satisfaction will decrease with each regular purchase.IeHigh score good utility was only in the early stages of acquisition.The greater the number of identical goods, the lower their utility.
General and the marginal utility of the good will be wound to zero, if the market is there an overabundance of them, and the price will be high.But if the price decrease, the utility benefit will increase, and the amount of purchase or the amount of demand for the product will rise again.
shortages - an alternative to its excess to maintain its marginal utility.Then the total value will be saved, and the goods or services will be necessary, in demand.
Since the funds for the majority of customers are limited, a person always has to compare the usefulness of Wish and the possibility of its budget.The consumer is faced with a dilemma - to choose a combination of things he needed, products, etc., which would satisfy him as much as possible within its limited budget.And in this case the choice will affect not only the amount of the marginal utility of the good that is contained in each successive unit of the product, for example A, but also on how much money and, therefore, other kinds of goods, he will refuse to buy this product A. And the total value on the acquisition of goods or services and getting some things will satisfy a person with such a condition, when it will distribute the budget so that each sign of the cash spent on the purchase, brought the same marginal utility.
