Final answer:
An economic buyer compares various factors such as quality, utility, and convenience, against the price to make the best purchasing decision, aimed at maximizing utility within a budget. This approach is consistent with behavioral economics and consumer choice theory. When a shopper gets a 'good deal,' economists call this achieving consumer surplus.
Step-by-step explanation:
An economic buyer is an individual who systematically compares choices to maximize utility within the limits of their budget. Rather than making purchases based solely on the lowest price, an economic buyer takes into account various factors such as the quality, utility, price, and convenience of goods and services. This behavior is in line with the principles of behavioral economics and how individuals make consumer choices.
Suppliers must consider the cost of production when determining how much to offer for sale, whereas consumers, like someone who plans their weekly grocery shopping, aim to maximize utility—a measure of satisfaction or benefit received from goods or services—under a given budget constraint. In a broader sense, groups of people, firms, and society as a whole make economic decisions that reflect the preferences of the majority, as shaped by democratic pressure and social institutions.
What Happens When a Shopper Gets a 'Good Deal'?
When a shopper acquires a product at a favorable value that provides high utility relative to its cost, an economist might describe this as achieving consumer surplus. The concept of consumer surplus explains the difference between the maximum amount a consumer is willing to pay for a good and its actual market price.