A LOOK INTO ECONOMY

OFFERING UNLIMITED MEALS HAS BECOME A MAJOR SELLING FOR MANY ANDHRA RESTAURANTS-

Unlimited meals have captivated people of Andhra Pradesh as it fulfils the maximum satisfaction as per the requirement of people. As we are aware of the different levels of satisfaction on indifference curve. People often tend to go for maximum output minimising the cost.

Take for instance, a similar case which I encountered in Calcutta at Barbeque nation. For 750/- you can have unlimited kababs, grills and main course along with desert. Profitable for those who have a good hunger and appetite.

THREE PERSPECTIVE LOCATIONS FOR A MALL-

LOCATION ‘’A” OFFERS 1000 NET BENEFIT UNITS,

LOCATION ‘’B” OFFERS 800 NET BENEFIT UNITS &

LOCATION ‘’C” OFFERS 850 NET BENEFIT UNITS-

Among the three options, location A, as the people trade of is more as the opportunity cost of acquiring A is 200/- compromising B, similarly opportunity cost for C is 150/-.

For instance, when I looked for MBA colleges, I selected IBA giving up on BIMS, Pune which is my opportunity cost for IBA.

LOTS OF UNSEASONAL PRICE FLUCTUATIONS HAPPEN IN VEGETABLES-

The unseasonal fluctuation in prices is due to the seasons and availability of substitute.

For instance, whenever there is a rise in prices of the vegetables, I go for alternative or substitute vegetable as per the seasons. 

TO MANY, INDIAN IT INDUSTRY SUCCESS S ON ACCOUNT OF THEIR ABILITY TO OFFER PRODUCTS AT LOW PRICES-

This basically explains the competition between Indian IT products and MNC or international IT products. Here we can understand the concept of Cross price elasticity of demand.

For instance, if we have the high computer prices, the prices of the software goes down similar to the Indian  IT product example taken above,

INCREASING NUMBER OF TOURISTS ARE VISITING HILL STATIONS AS OPPOSED TO CONVENTIONAL REGIONAL PLACES-

The above statement describes the concept of marginal rate of substitution. It is the phenomenon where X units of product is taken to replace Y units of products to enhance satisfaction or utility.

For instance whenever there is a rise in price of peanut butter I go for normal Butter. In this case we use the concept of substitution. Whenever there is a rise in price we tend to go for the substitute of that product with another same kind of product.