What Is a Market Basket?

A market basket is a collection of one or more commodities. Market baskets represent typical goods or services purchased by households or individuals.

Market basket

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A market basket is a collection of one or more commodities. Market baskets represent typical goods or services purchased by households or individuals.

Preference is expressed as an order of an item or a combination of items. This ranking indicates the degree of consumer preference, or the intensity of desire, for different items or combinations of items. The market basket is an example used to study consumer behavior in different consumer product combinations to meet consumer preferences. The ABCD points shown in the figure above are plotted in the coordinate system. Obviously, the BAC is on a curve, which becomes an indifference curve. The indifference curve is a curve used to describe the preferences that consumers of different quantity combinations of two products bring to the same consumer. BAD is on a straight line, obviously D's preference is greater than A, and A's preference is greater than B. The combination of points on the curve gives consumers a preference that cannot be compared with points on the straight line.

The market basket is used as an example to study the vivid image of consumer preferences. The use of indifference curves to study the relationship between utility and size reflects the idea of combining numbers and shapes.