Consumption
Topic: Consumer Behaviour, Demand and Elasticity · NCERT: Class 11, Ch 1 "Introduction (Statistics for Economics)"
Meaning
Consumption means using goods and services to satisfy needs and wants. In economics, it usually means a household buying goods for this purpose. Studying consumption asks one question: with a given income and known prices, what will a household buy? Every household faces this problem because income is limited and wants are many.
Example
A household in Lucknow earns a fixed amount each month. It divides that money between rice, milk, vegetables, bus fares and a mobile recharge. The way it splits its income across these items is its consumption choice.
Don't confuse with
- Consumption bundle: this is one particular combination of quantities of goods, such as 5 bananas and 10 mangoes. Consumption is the wider act of buying and using goods to satisfy needs.