Theory of Consumer Choice and Frontiers of Microeconomics

You have been asked to assist your organization’s marketing department to better understand how consumers make economic decisions.

Write a 1,050-word analysis that includes the following:

The impact the theory of consumer choice has on:
Demand curves
Higher wages
Higher interest rates
The role asymmetric information has in many economic transactions
The Condorcet Paradox and Arrow’s Impossibility Theorem in the political economy
People not being rational in behavior economics

Cite a minimum of 3 peer-reviewed sources not including your textbook.

Format consistent with APA guidelines.

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Introduction

People often consume less than they desire due to constraints as a result of their income. The law of demand relates to the consumer’s desire for the good and his or her willingness to pay for the commodity. Consumer choice has a different effect on different economical aspects as explained below.

Demand Curves

Consumer choice affects the demand in that; preference for the commodity being represented can either increase or decrease the demand for the product whereby, if there is a high preference, then the demand is high but if the preference of the commodity id low, then the demand for the commodity is lower…..

APA

1129 words