1. Consumer Demand Theory is a theory that explains how people buy things. How do consumers strike a balance between the need to purchase a good or service and the cost of doing so 2. Consumer demand theory is a pillar of contemporary microeconomics and offers insight into predicting consumer demand. This theory examines consumer behavior, particularly market transactions, in terms of the fulfillment of wants and needs (utility) produced by the consumption of a good. 3. The most obvious real-world example is oil. Just a tiny amount of change in the quantity requested would occur if the price changes significantly. As a result, fuel has a low elasticity. The quantity required for Petronas gasoline would not decrease substantially as the price of the fuel grows