Analysis of consumption functions:Estimation of the consumption functions belongs to Manisa

Consumption expenditures are one of the significant topics that the economy theory studies. It is not possible to think about an economical science which does not include human, society and consumption. Since the moment he/she is born, every human being has to consume in different amounts and varieties for their needs until the end of his/her life. This issue can be seen as the basis and origin of economy and the main branch of economical science that concerns all people is consumption. Economists give a different importance to the issue of consumption. In the study, it is primarily aimed to deal with the concepts of need and consumption, their varieties and consumption theories one by one and the explanation of the critical sides of these theories is aimed as well. Later on, it will be tried to determine the preferences that people of Metropolitan City of Manisa make while they supply their needs and the external factors that affect these preferences will be tried to be identified with the help of face to face questionnaire application. The effects of these external determiners on people of Manisa will be examined. After that, it will be tried to reach a general consumer profile under the light of the data that is about consumption expenditures of the people of Manisa. The essential aim of this study is to examine the externalities that affect consumption for the people who live in the metropolitan area of the City of Manisa, their determiners and how these determiners are identified by the public of Manisa and to find and test the most suitable model for the prediction of it. Calculating the flexibility values of consumption groups and examining the applicability of Engel's Law are the other purposes of the paper. Keywords: Consumption Expenditures, Income Hypothesis, Manisa, Consumption Flexibility, Engel's Law.