1)UTILITY :- Utility refers to the satisfaction that people obtain from their consumption activities. For example:-
a) Today ,while I was doing my live project of baggry's we had kept few samples of chocos and cornflakes through which people were tasting that particular product and they were purchasing that product through which they were satisfied.
b) when I was hungry, I ordered for my favourite dish and when the dish was served to me I started eating after taking it two-three times I got very much satisfied so here the favourite dish was the utility which satisfied my hunger.
2)LAW OF DEMAND :- Law of demand refers to the price of the product that means if the price of the product increases then the demand for it gradually falls.For example:-
a)Last Sunday, I went to a shop to buy some sweets to my relatives house as I always prefer haldiram's I thought of buying it but there was an increase in price of the product so , I thought of buying Lal which was next to it and there was an offer of buy 1 get 1 free with less price so I could see the demand for it and this was Law of demand how it affected the product with an increase in price.
b)As you can see in cosmetics there is always a demand for it you can take the example of lakme and Maybelline, though both preferably use the same ingredients but since Maybelline has a higher price people prefer lakme as it is less in price as compared to Maybelline.so here the demand for lakme is increasing due to change in price.
3)OPPORTUNITY COST:- Opportunity cost refers to the pricing decisions that is given to the product in order to achieve a particular target.For example:-
a) In my live project only bagrry company has given an offer to chocos and cornflakes that is buy 1 get 1 with a price of one product and now it's the company's target to sell 100 products each day which acts as a opportunity for the company to sell more products at less price.
b)We can take the example of boost an energy drink now that the company has reduced its price and as it is consumed more by youths now it acts as a opportunity cost for the company to sell more quantities of it in order to get huge profits.
4)PRODUCER SURPLUS:- Producer surplus refers to the difference between the price which the producer is willing to sell and the price which is actually sold.For example:-
a)A vegetable vendor is willing to sell potatoes for 30 rupees in the market but as it is sold by its competitors at less than the price.He also sells the potatoes at that price.
b)A Book seller thought of selling the particular book at a low price as it was an old one but when he came to knew that there was a demand for that particular book he thought of selling the book at higher price which also got sold.
5)CONSUMER SURPLUS:- Consumer surplus is the difference between the surplus which the consumer is willing to pay and what the consumer actually pays.For example:-
a)once I went to a shoes shop and seeing at the shoes I made it clear that I will buy that shoes and when I got to know the price of the shoes I started to bargain and came to a point that I will give 100 rupees less but then I thought of getting more discount so while giving the money I gave more 50 rupees less for that particular pair of shoes.so all total the price of that shoes was 500 rupees and I gave 350 rupees.
b)We can take another example of Kelloggs oats and baggry's oats here the consumer puts in mind that he/she will buy Kelloggs oats but when they see that there is an offer on baggry's oats that too they are getting more quantity at less price so they prefer baggry's oats because they get that in less price.
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