Concepts with related situations

1.The artist or performers performing at different cities or events

Concept: Law of demand

This situation is related to law of demand because the artist are performing in different cities because of the increasing demand for their performances. As one among the determinants of law of demand is the satisfaction of the customers, this performance satisfies them and thus it increases the demand.

2. Three prospective locations of large retail outlet. Location A offers 750 units location B offers 900 units and location C offers 850 units

Concept: Opportunity cost

The retailer would select location B because the outlet produced are 900 units which is actually because the demand from the consumers are high.
The opportunity of getting profit from Lokesh and B is higher when compared to other

3. The number of tourists visiting hill station is comparatively hai to that of religious places.

Concept: Marginal utility

This situation is related to marginal utility because the satisfaction when a consumer or a customer gets on visiting a hill station is more comparative to the religious places. Also in hill stations there will be good accommodation food and hygiene provided which cannot be find in religious places, so been to this they prefer for most satisfaction they would like to go hill stations.

4. As the usage of skilled labour along with technology increased the output is expected to be high.

Concept: Increased return to scale

The situation is being deleted to this concept because when the input is increased obviously the output also with increased according to increase return to scale. The input are skilled labour and the technology when these two are increased the output is also increased.

5. Success of an IT industry is based on how low the price of the product they offer.

Concept: Opportunity cost

IT sector is very vast such that consumers are having many options based on their preference. Obviously the first preference of the consumer will be the price so if one if only the IT industry offers low price for their product the consumers will buy and definitely it will impact the success of the industry.