Law of demand:
Law of demand states that when a price of a commodity rises the demand for it decreases and vice versa.
Ex: When i went to buy a gold necklace,i found the price has increased and thus, the demand for necklace went down.
Law of supply:
Law of supply states that as the price of a commodity rises the supply also rises and vice versa.
Ex : During winter when the price of rosogolla increases, the supply also increases.
Law of diminishing marginal utility:
The more we consume one particular product at a given time the satisfaction derived from one additional unit of consumption decreases.
Ex:During summer after reaching home i had one ice cream and then another but after having 2 ice creams my satisfaction derived from consuming ice cream started decreasing.
Tastes and preferences :
Tastes and preferences causes shift in demand curve.
Ex: During winter i prefer to have hot coffee to cold coffee, on other words my preference from cold coffee shifts to hot coffee.
Ordinal Utility:
It is a measure of utility which is not defined in numbers it is generally a ranking process.
Ex: During school class tests based on our performance in class, the teacher ranked all the students of the class in desending order.
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