1.PRICE ELASTICITY OF DEMAND:
when their is an increase in one variable due to decrease on another variable, then price elasticity of demand occur.
For Example : their is a lot of seasonal price fluctuation because of the availability and unavailability of the vegetables. In summer the price of the cauliflower is more because in summer the production of cauliflower is high but in winter the production of cauliflower is less because the production is less which increases the demand of the product.
2.UTILITY:
Utility means "usefulness". But economist named as SATISFACTION. Those goods which are consumed by consumer until they get satisfy called utility.
For Example : why do men and women fancy themselves to participate in the beauty contests because to get satisfaction among the people around him/her.(in terms of status).if men or women will not fancy themselves then they will not satisfy and feel awkward in the contest.
3.INCREASE RETURN TO SCALE:
Its talk about the increase of output when their is a increase in input.
For example : To many , IT industry success is on account of their ability to offer products at low prices because many industry focuses on the new technology adoption. If their will be new technology adoption then the company output will increase faster and which also reduces the low cost productivity so IT INDUSTRY smart in offering products in low prices.
4. SITUATION AT WHICH DEMAND AND SUPPLY BOTH INCREASES:
when in economy their is increase of demand and increase of supply of good is more , called law of demand and supply.
For example : live musical performance, when their is season of marriage or any kind of festival then their is demand of live musical performance due to which supply is also increase of live musical performances because in this situation demand is greater than price.
5.OPPORTUNITY COST:
loosing the opportunity is called opportunity cost.
in the another word, when their is the situation of choosing the best alternative and sacrificing the another alternative, called opportunity cost.
For example : Circus artist performer performing in multiple cities or events because they are searching for the best alternative place which will bring more profits than of than the opportunity they lost.
when their is an increase in one variable due to decrease on another variable, then price elasticity of demand occur.
For Example : their is a lot of seasonal price fluctuation because of the availability and unavailability of the vegetables. In summer the price of the cauliflower is more because in summer the production of cauliflower is high but in winter the production of cauliflower is less because the production is less which increases the demand of the product.
2.UTILITY:
Utility means "usefulness". But economist named as SATISFACTION. Those goods which are consumed by consumer until they get satisfy called utility.
For Example : why do men and women fancy themselves to participate in the beauty contests because to get satisfaction among the people around him/her.(in terms of status).if men or women will not fancy themselves then they will not satisfy and feel awkward in the contest.
3.INCREASE RETURN TO SCALE:
Its talk about the increase of output when their is a increase in input.
For example : To many , IT industry success is on account of their ability to offer products at low prices because many industry focuses on the new technology adoption. If their will be new technology adoption then the company output will increase faster and which also reduces the low cost productivity so IT INDUSTRY smart in offering products in low prices.
4. SITUATION AT WHICH DEMAND AND SUPPLY BOTH INCREASES:
when in economy their is increase of demand and increase of supply of good is more , called law of demand and supply.
For example : live musical performance, when their is season of marriage or any kind of festival then their is demand of live musical performance due to which supply is also increase of live musical performances because in this situation demand is greater than price.
5.OPPORTUNITY COST:
loosing the opportunity is called opportunity cost.
in the another word, when their is the situation of choosing the best alternative and sacrificing the another alternative, called opportunity cost.
For example : Circus artist performer performing in multiple cities or events because they are searching for the best alternative place which will bring more profits than of than the opportunity they lost.
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