In deciding which model of a car to buy,microeconomic theory maintains that consumers are concerned about the absolute price of a particular car,rather than its relative price.

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Microeconomic theory states that consumers are actually concerned about the relative price of a particular product, not just its absolute price. This means that consumers consider the price of a product in relation to their income and the prices of other similar products in the market.

In Deciding Which Model of a Car to Buy,microeconomic Theory