ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Consumer purchases refer to items used in daily living (e.g., clothing, food, electronics, appliances). They are the purchases that most intimately frame your life: you live with these items and use them every day. They are an expression and a reflection of you, your tastes, and your lifestyle choices.

Detailed explanation-2: -When consumers purchase one good or service, they are giving up the chance to purchase another. The best single alternative not chosen is their opportunity cost. Since a consumer choice always involves alternatives, every consumer choice has an opportunity cost.

Detailed explanation-3: -If a consumer believes they are getting a good deal, then lower prices can help get you the sale. On the other hand, low prices can also give the impression that the product is of low quality.

Detailed explanation-4: -Consumer buying power is how you (the consumer) decide to spend money. It’s all about your behavior. If you have $500 to spend on items each month, then that’s your consumer buying power-meaning $500 is how much money you’ll put back into the economy when you buy stuff.