1. Ordinal Utility : It is a function representing the preference of an agent on a ordinal scale. The ordinal utility theory claims that it is only meaningful to ask which option is better than the other, but it is meaningless to ask how much better it is or how good it is.
Example : I was suppose to buy a scooty so i was having a option of two scooty one is activa and another is pleasure then i decided that it should according to my height and weight. I have given the first preference as pleasure because it is light in weight and activa as a second preference then i had a test ride for activa i found that it was heavy but comfortable to ride, then i went to have test ride of pleasure i found it good according to me because it was light in weight and it was good to ride also so i decided to buy a pleasure.
2. Law Of Demand : Consumer's desire ,ability and willing to purchase goods at various price.
Example: In my town a new restaurant open up and get great review. There are only 12 tables in the restaurant but everyone want to get reservation. Demand for the reservation goes up.
3. Diminishing Marginal Utility : It is used to refer to a point at which the level of profit are benefit gained is less than the amount of money or energy invested.
Example: When eating the second orange i 'am still hungry , but less than i were when i started eating my first orange . And so the satisfaction i got from first orange was more than the second banana . Same shall be the case with the later oranges. Thus law of diminishing marginal utility
4. Law Of Incentive Theory : It is something motivates an individual to perform an action. The study of incentive structure is central to the study of all economic activities both in term of individual decision making and in term of competition in a large institute structure.
Example : I could be motivated to clean the house with promise of new dress , where the dress act as a incentive.
5. Law of supply: The law of supply states that keeping other factors constant , an increase in price results in an increase in quantity supplied.
Example: I purchase Redmi note 5 pro ,the price of mobile phone increase , suddenly mobile phone manufacturers will produce more mobile phone to earn more revenue . As there will be more scope to get profit with the no. of product produced the manufacturers increase the supply. Suddenly more product with different quantities with the same price increase the demand for the product . Therefore the supply of mobile phone in the market will be increased
3. Diminishing Marginal Utility : It is used to refer to a point at which the level of profit are benefit gained is less than the amount of money or energy invested.
Example: When eating the second orange i 'am still hungry , but less than i were when i started eating my first orange . And so the satisfaction i got from first orange was more than the second banana . Same shall be the case with the later oranges. Thus law of diminishing marginal utility
4. Law Of Incentive Theory : It is something motivates an individual to perform an action. The study of incentive structure is central to the study of all economic activities both in term of individual decision making and in term of competition in a large institute structure.
Example : I could be motivated to clean the house with promise of new dress , where the dress act as a incentive.
5. Law of supply: The law of supply states that keeping other factors constant , an increase in price results in an increase in quantity supplied.
Example: I purchase Redmi note 5 pro ,the price of mobile phone increase , suddenly mobile phone manufacturers will produce more mobile phone to earn more revenue . As there will be more scope to get profit with the no. of product produced the manufacturers increase the supply. Suddenly more product with different quantities with the same price increase the demand for the product . Therefore the supply of mobile phone in the market will be increased
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