Consumption function is the basic theories given in Macro economics. We already have discussed about the theory of consumers surplus and analysis of market structure. Now, we will raise a debate on consumption function and law of consumption. The theory is taken from Managerial Economics book of SMU. It is MB0026 book code of Sikkim Manipal University for MBA.Psychological Law of Consumption:Consumption means using goods and services for satisfying current wants. We spend major portion of our income on consumption. Consumption expenditure means house hold spending, which satisfies our immediate wants. Under this section, we will study...