Theory of the Consumer

Microeconomics is traditionally constructed from two branches, the theory of the firm and the theory of the consumer.  The former studies the supply of goods by profit-maximizing agents, and the latter studies consumption by utility-maximizing agents.  The counterpart to the supply and demand for goods is the supply and demand for labor by consumers and firms.

The EconModel applications that feature the Theory of the Consumer include Two Goods - Two Prices, Labor Supply, Income Taxes, and Transfer Payments, and Intertemporal Substitution.

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Economics Terms

Arbitrage Pricing
Arbitrage Profit
Average Cost
Balance of Payments
Budget Constraint
Call Option
Concave Function
Consumer Surplus
Consumption Function
Convex Function
Deadweight Loss
Demand Curve
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Jensen's Inequality
Macroeconomics
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Monopoly
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Phillips Curve
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Production Possibility Frontier
Put Option
Recession
Reservation Wage Rate
Risk Aversion
Structural Unemployment
Substitution Effect
Supply Curve
Taylor Rule
Technological Growth
Term Structure
Theory of the Consumer
Theory of the Firm
Unemployment Rate
Utility Function
Velocity of Money
Widget
Yield Curve