When it comes to Economics everybody is a consumer at one or the other point and human beings as we all know have unlimited wants but very limited resources. This is where microeconomics comes into play. It is microeconomics that tells us how a free market economy with its millions of consumers and producers work to decide about the allocation of productive resources among the thousands of goods and services, more simpler words,  study of how we make decisions because we know we don't have all the money and time in the world to purchase and do everything.

WHY EXACTLY PIZZA’S OVER BURGERS AND WILL IT ALWAYS REMAIN THE SAME?

Now here’s where consumer preference comes into play. Consumer preference is defined as the subjective tastes of individual consumers, measured by their satisfaction with those items after they’ve purchased them. This satisfaction that a consumer gets from the consumption of a good or service is called as Utility. As individuals consume more of a good per time period, their total utility (TU) or satisfaction increases, but their marginal utility diminishes. Marginal utility (MU) is the extra utility received from consuming one additional unit of the good per unit of time while holding constant the quantity consumed of all other commodities. For example, in the case of unlimited Pizza, you won’t be getting the same level of satisfaction after your 3^rd or 4^th pizza even if it is free. So, when the Marginal Utility derived from pizza’s fall, one might choose burgers over pizza.

 ASSUMPTIONS OF CONSUMER THEORY.

The consumer theory assumes that the consumer is rational. This implies that his preferences satisfy the following properties:

1.       They are complete; that is, given any set of possible bundles of goods, the consumer is always capable of deciding which one is preferable to the others and then ranking them in terms of preference.

2.       They are reflexive; it means that any bundle is at least as good as itself.

3.       They are transitive; meaning that if a bundle A {\displaystyle A\,}is preferred to a bundle B, {\displaystyle B\,}and this bundle {\displaystyle B\,}is preferable to a third bundle{\displaystyle C\,} C, then it is implied that the first bundle {\displaystyle A\,}will be preferred to the third bundle{\displaystyle C\,}.

4.        They are continuous; there are no big jumps in the ranking of alternatives.

The focus of all bundles that give a certain level of utility to the consumer constitutes an indifference curve (or level curve), which is the usual way of representing preferences. Nevertheless, in spite of these four properties, there is still the possibility of having “special cases” such as the existence of perfect substitutes or perfect complements, among others, which lead to special shapes for the indifference curves. For avoiding these cases, two additional properties are assumed:

       5. Preferences are monotonic, or “more is preferred to less”; this implies that, given any set of two bundles, if one of them contains at least as much of all goods and more of one good than the other, then the first bundle will be preferred to the second.

       6. Preferences are convex; that is, any combination of two equally preferable bundles will be more desirable than these bundles.

These five properties confer a special shape to level curves: they are downward slopping and convex.

CONCLUSION

So, in conclusion by studying consumer preferences we will be able to understand the needs and wants of the people and will also help us in determining the quantity of the goods that must be produced to satisfy the consumers and which good would yield the producer greater profits. Because at the end we are all rational human beings with unlimited wants/needs and limited resources.