Saturday, August 25, 2018

Concepts of economics involved in real life

                                          TYPE 1 PAPER 

CONCEPT 4:-

This concept is related to production possibility curve. Using of inputs of one unit in the other unit to increase the production is production possibility here in this situation usage of skilled labor combined with technology is increased to expect the higher output in service industries. As inputs are combined with other the output will be higher.

CONCEPT 6:- 

Lot of unseasonal price fluctuations happen in vegetables because of supply and demand. If the supply of any good is more the demand decreases and the price decreases. If supply decreases the demand increases and price increases. 

CONCEPT 8:- 

Some hotels offer diverse menu both depth and breadth if there are very few items people feel bored to same variety they expect different varieties of items. Satisfaction level decreases many others offer vary  on their menu as people face trade offs. They feel confused to select and decide. 

CONCEPT 9:- 

This is related to people respond to incentives. 
Most of the IT department industries offer products at lower prices to attract customers.

CONCEPT 10:- 

Rational people think at margin. People expect marginal satisfaction with whatever money they are spending. Offering unlimited meals has become a major common thing . People buy any good for marginal benefits they are getting 

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