#cfa #cfa-level-1 #consumer-theory #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand
Although consumer choice theory attempts to model consumers’ preferences or tastes, it does not have much to say about whyconsumers have the tastes and preferences they have. It still makes assumptions, but does so at a more fundamental level. Instead of assuming the existence of a demand curve, it derives a demand curve as an implication of assumptions about preferences. Note that economists are not attempting to predict the behavior of any single consumer in any given circumstance. Instead, they are attempting to build a consistent model of aggregate market behavior in the form of a market demand curve.
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