Saturday, August 25, 2018

BASIC BUT IMPORTANT TOPICS OF ECO WITH SIMPLE REAL LIFE EXAMPLES

1. law of demand
law of demand says that price and demand of goods and services are inversely to each other .If  price will increase than demand will decrease .
Eg:- Off Season things like clothes , fruits etc , price increases and demand decreases .

2.law of diminishing marginal utility 
This law says that other all things will remains same  when extra additional input is consumed , than in result marginal utility will decline .
Eg:-imagine there is a girls who want to buy extra pair of tops and instead of having enough she want more . she will use that less therefore because of more tops her satisfaction level decreases .

3.Inelastic demand
This is one of the case where the demand does not effect or can say does not increase or decrease with respect to increase or decrease in price .
Eg:-increase in price of rice , wheat and pulses is in inelastic demand as increase in price also make in change because of little less demand create not more change in overall change .

4.Supply curve 
supply curve is the graphical representation of two factors one is price and other is supply of goods and services . both are proportional to each other .
Eg:-supply of maggie increases as more the people like the product more the supply will be there , as a result price of maggie will also increase .

5.Consumer behavior
This is the study of individual , group and organisation where customer deals with the price , usage and disposal of goods and services .
Eg:-purchasing of goods from market and satisfied with its price and consumes it fully with full satisfaction is one of the example od consumer behavior .

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