CONCLUSIONS

Of all consumer behaviour theories including Marginal Utility analysis, Indifference curve analysis and Revealed preference theory. Indifference curve analysis is limited to the theoretical arena of microeconomics since although utility curves explain the satisfaction derived from consuming a commodity they cannot be literally calculated. We found Revealed preference theory to be most practically applicable since the objective of this survey was to deduce the change in consumer behaviour given changes in the price of the selected commodities and in their income levels. The Revealed Preference theory created by Paul Samuelson in 1938. explains consumer demand from his actual behaviour in the market in various price and income situations. The data follows revealed preference since the accumulated data in our survey has been revealed to us willingly by those surveyed. By stating their preferred quantities they would consume at various price and income levels we deduce that the majority of those surveyed are rational consumers. The types of commodities we chose are neccessity goods in order to simplify the survey. Generally these products are consumed uniformly across all households for which consumers tend to have inelastic demand. Therefore our choice reduces barriers to survey since they are beneficial to surveyour and surveyee. We found out that the average consumption of milk is 39litres per month. Average consumption of onion is 4.6 kgs per month and Average consumption of rice is 11.2kg per month.