Understanding Consumer Choices and Protections

Topic 1: The Consumer A consumer is an individual purchasing goods (physical items) or services

(actions performed) for personal use, driven by the desire to satisfy needs (essentials for

survival) or wants (non-essential desires). Every purchase involves an opportunity cost, the value of the

next best alternative forgone. Consumer choices are influenced by factors like budget,

quality, convenience and differences in prices, which are themselves affected by demand

and production costs. To make better decisions, consumers should research, budget,

and prioritize actual needs. Protection is vital; laws like the Australian Consumer Law safeguard

basic consumer rights (e.g., to safety, to be informed) and prohibit unethical