An Empirical Study on the Consumers Behaviour and Economic Loss

Abstract

The expectation of consumer is attained maximum consumer surplus when he purchases the commodities. Forfeiture means a loss of money due to paid the highest amount of money rather than willing to pay for the commodity, is the economic measure of this loss of satisfaction. It expresses that the consumers are generally ready to pay a low price for the commodity than its value. Empirical research relies on experience or observation alone, often without due regard for system and theory. It is actually based on the law of diminishing marginal utility of money. The level of satisfaction is varied from consumer to consumer according to their purchasing power, intensity of demand and price level. The consumer is expected more economic benefit when he purchases the commodity but seller charges more price on that commodity that a particular commodity is very urgent needed to the consumer to satisfy present want and can not postpone purchasing it. Therefore, he is compelled to purchase it and in this situation he incurs loss.