A scale of preference is a list of a consumer's wants arranged in order of importance. The purpose of creating a scale of preference is to help the consumer make rational choices by ranking their preferences in a logical and consistent manner.
Human beings have unlimited wants, but the resources available to satisfy those wants are limited. Therefore, consumers must make choices about which wants to satisfy and in what order. By creating a scale of preference, the consumer can identify which wants are most important and which wants can be sacrificed if necessary.
For example, a person might create a scale of preference for their monthly budget, listing their most important expenses such as rent, food, and transportation at the top of the list, followed by less important expenses like entertainment or luxury items. If the person's budget is limited, they can use their scale of preference to decide which expenses to prioritize and which ones to cut back on.
In summary, a scale of preference is a tool that enables consumers to make wise and rational decisions about their choices by arranging their wants in order of importance.