Consumption and the Consumer

Abstract

The consumer is that trader responsible for consumption act of some final goods or services who decided what must be produce and in what cantity, being the one who make the economic mechanism to move. Consumption is in close connection with the production of goods and services, exerting an active role, any activity should be complete by consuming its results; consumption creates the motivation to achieve economic and non-economic activities. The traditional approach to consumer behavior starts from hypothesised that all consumers seek to maximize the aggregate utility obtained of satisfactions resulting from consumption of goods taking into account the budgetary constraints given by income that consumer has and the prices of these goods. In the conditions of modern economy, consumption can be increased by diseconomies. If consumption depends on permanent income, revenue growth effectively does not exert influence on consumption only to the extent that this increase of income leads to increasing permanent income consumer. Consumption is viewed as an active agent of economic life, it is not only a consumer of goods and services but also a producer.