See D. E. Nye and C. Pederson, Consumption and American Culture (1991).
Levy such as an excise tax, a sales tax, or a tariff paid directly or indirectly by the consumer. Consumption taxes fall more heavily on lower-income than on upper-income groups because people with less money consume a larger proportion of their income than those with more money. Seealso progressive tax, regressive tax.
Learn more about consumption tax with a free trial on Britannica.com.
In economics, the final using up of goods and services. The term excludes the use of intermediate products in the production of other goods (e.g., the purchase of buildings and machinery by a business). Economists use statistical information on income and purchases to trace trends in consumption, seeking to map consumer demand for goods and services. In classical economics, consumers are assumed to be rational and to allocate expenditures in such a way as to maximize total satisfaction from all purchases. Incomes and prices are seen as consumption's two major determinants. Critics of the model point out that there are many exceptions to rational consumer behaviour—for example, the phenomenon of conspicuous consumption, in which the high price of a product increases its prestige and adds to demand.
Learn more about consumption with a free trial on Britannica.com.
Consumption may also refer to: