Answer to Question #177879 in Microeconomics for Rahila Naz

Question

How can time be incorporated into the theory of consumer behavior? explain the following comment: 'wants to make millions of dollars?Devise a product that saves americans lots of time

Answer 1

i)For a person who can earn so much per hour, each hour spent not working is so much money not made. For most of the people time is the most precious thing in their daily livelihoods.

 People associate their time with Money , what they make in a given period of time. As is said “time is money”. If a business or company provides a service to the consumer which is worth their time, that is, if the marginal utility of The service is more than their time , then the consumer would surely avail the service . Therefore consumer behavior theory accounts for time because time can be used to make more money. This is how time can be integrated into the theory of consumer behavior.

ii)To all, time is the most valuable asset. As a result, if we help people save time by providing them with essential services, we will be helping them save money and they will be able to earn more in their spare time. As a result, if we create a product that saves people time, people will surely buy it, and the product will be a success. Many Americans would get the product as long as the extra income gained is greater than the value of the device. For many Americans, time is most scarce in their daily lives.