5 CONCEPTS AND SOME EXAMPLES

UTILITY -:  

Utility is that Quality in a commodity by virtue which is satishfying Human wants is called utility .

EXAMPLE-: 

water has Different utilities and it is used for drinking , bathing and washing purpose .

OPPERTUNITY COST-:

Oppertunity cost known as Alternative cost , The value of the choice  in terms of the best alternative choice or decision is called oppertunity cost .

EXAMPLE-:

Me and my Friend going to a movie to spend some time .if we can spend that time at home then we cannot spend the money and time .

LAW OF SUPPLY -:

It states that when  the price of goods and services increases in the market the quantity of the product increases . and others remaining constant .

EXAMPLE-:

When the price of apple increases , the supplier is willing to supply apple in the market to increase his profit .

LAW OF DEMAND -:

It states that with an increase in the price of goods or services the Quantity demand decreases .

EXAMPLE-:

When the price of chocoloates decreases Quantity demanded increases .

LAW OF DIMINISHING RETURNS -:

If one factor of production is substituted other factor of production , the marginal product of one factors declines as the marginal product increases .

EXAMPLE-:

After Eating the first ice-cream my satishfaction was the high level . and as i consumed more ice-cream my satishfaction level goes down .