1. LAW OF MARGINAL UTILITY:
Consumption increases the marginal utility derived from each additional unit
declines.
Example: Last year I went for
guitar classes. On the first class I derived 100 units of utility and on the
second it went to 80 units and so on its got decreases.
2. LAW
OF DEMAND: “conditional on all else being equal” As
the price of goods increases the demand of goods decrease and vice versa.
Example: on 5th September 2016,
when JIO launched the price was very cheap. Due to which the users of JIO
increases and the demand of other tele-company decreases.
3. OPPORTUNITY COST:
Example: Last year me and my family were planning
to go for a vacation to Manali but suddenly my dates came due to which we have
to cancel the plan. So here the opportunity cost was my vacation and the
second best alternative was my exam.
4. RATIONAL BEHAVIOUR: Refers to the decision making process that is bases on making choice that result in the optimal level of benefit or utility of an individual.
Example: Lets take an example of junk foods
and Fruits. As if we get an choice in between these two so obviously we’ll
choose fruits because they are very healthy and its our level of benefit.
5. ISO-QUANT CURVE: Same quantity of output is produced , while changing the quantities of two or more units.
Example: Incentives can be the examples of the
iso-quant curve as when we purchase the new laptop we get an antivirus fee so
that antivirus can be consider as the incentives.
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