1)Law of Supply: It states that, as the price of good or services increases, the quantity of goods or services that suppliers offer will increase and vice versa.
Example 1: In our college grocery store, i would like to spend more for maggi i.e it costs Rs.30, but actually outside it costs less than Rs.30, because supply of maggi is more , even students are willing to pay if price increase also.
Example2: As price of the 'almonds' increases , the supply of almond also increases . People buy the almonds even though the price increases because it is good for health.
2)Law of Demand: It states that, as the price of a good increases, quantity demand decreases and vice versa.
Example 1: Once i had been to a shopping mall during diwali sales , the price for all women accesories decreased and demand for those accesories increased
Example 2: once in 2010 , the price of the gold decreased drastically,the demand for the gold increased immediately.
3)Economic surplus: Economic surplus is a combination of consumer surplus and producer surplus in an economy. Here Producer Surplus says that the profit obtained for selling a good by supplier or obtaining higher market price than they would be willing to sell and Consumer Surplus says that the profit obtained for paying a lower price for a good by the consumers than the price they would be willing to pay.
Example 1: When i went to buy a mobile for my mother , I was not willing to pay more than Rs.8000, thier i found a mobile which costed around Rs.7000 and salesperson sold it for Rs.5500, so here i got surplus of Rs.1000 & salesperson got a surplus of Rs.1500 , so here total economic surplus is of Rs.2500.
Example 2:Once in Diwali days,I was aware that bus tickets would cost high.When I was travelling from Raichur to Bangalore,actual price during normal days was around 600,since it was festival days.I expected that it would cost around 1000,but their bus ticket was 800.Here C.S.200, P.S is 100, So E.S. is 300.
4) Cardinal Utility:It is the utility wherein the satisfaction derived by the consumers from the consuservice can be measured numerically.
Example:For me Boost gives me more satisfaction as get 70 utils after eating it in comparision to Bournvita which gives me 30 utils.
5)Marginal Utility:It states that the satisfaction which a consumer derives from the consumption of product or service cannot be measured numerically.
Example:For me Service given by private buses gives more than the service given by train.
6)Law of Diminishing Utility:
The utility of a commodity diminishes at the consumer gets larger quantities of it.
Example:Recently few days back, I had been went to KFC.I was so hungry as I am Non Veg Lover,I ordered more than I would actually eat. As a result,consuming first piece of KFC Chicken I got satisfied but satisfaction level decreased after eating 1st piece of KFC.
Example 1: In our college grocery store, i would like to spend more for maggi i.e it costs Rs.30, but actually outside it costs less than Rs.30, because supply of maggi is more , even students are willing to pay if price increase also.
Example2: As price of the 'almonds' increases , the supply of almond also increases . People buy the almonds even though the price increases because it is good for health.
2)Law of Demand: It states that, as the price of a good increases, quantity demand decreases and vice versa.
Example 1: Once i had been to a shopping mall during diwali sales , the price for all women accesories decreased and demand for those accesories increased
Example 2: once in 2010 , the price of the gold decreased drastically,the demand for the gold increased immediately.
3)Economic surplus: Economic surplus is a combination of consumer surplus and producer surplus in an economy. Here Producer Surplus says that the profit obtained for selling a good by supplier or obtaining higher market price than they would be willing to sell and Consumer Surplus says that the profit obtained for paying a lower price for a good by the consumers than the price they would be willing to pay.
Example 1: When i went to buy a mobile for my mother , I was not willing to pay more than Rs.8000, thier i found a mobile which costed around Rs.7000 and salesperson sold it for Rs.5500, so here i got surplus of Rs.1000 & salesperson got a surplus of Rs.1500 , so here total economic surplus is of Rs.2500.
Example 2:Once in Diwali days,I was aware that bus tickets would cost high.When I was travelling from Raichur to Bangalore,actual price during normal days was around 600,since it was festival days.I expected that it would cost around 1000,but their bus ticket was 800.Here C.S.200, P.S is 100, So E.S. is 300.
4) Cardinal Utility:It is the utility wherein the satisfaction derived by the consumers from the consuservice can be measured numerically.
Example:For me Boost gives me more satisfaction as get 70 utils after eating it in comparision to Bournvita which gives me 30 utils.
5)Marginal Utility:It states that the satisfaction which a consumer derives from the consumption of product or service cannot be measured numerically.
Example:For me Service given by private buses gives more than the service given by train.
6)Law of Diminishing Utility:
The utility of a commodity diminishes at the consumer gets larger quantities of it.
Example:Recently few days back, I had been went to KFC.I was so hungry as I am Non Veg Lover,I ordered more than I would actually eat. As a result,consuming first piece of KFC Chicken I got satisfied but satisfaction level decreased after eating 1st piece of KFC.
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