1.Complementary goods.
Complementary goods are those goods which are consumed together or simultaneously.
Example1… Tea and sugar are used together(a fall in the price of tea, will cause a rise in the demand for sugar).
Example 2…Pen and ink are used together( a fall in the price of pen, will cause a rise in the demand for ink).
Example3… automobiles and petrol are used together.(a fall in the price of petrol-driven cars would lead to a rise in the demand for petrol).
2.Substitute goods.
Substitute goods are those goods which can be used with ease in place of one another.
For example1. When iam going to a hotel I am hungry and I love biryani but on that day the biryani is not there instead of I eat chapati.
For example 2. Tea and coffee. ( if the price of tea falls, people will try to substitute it for coffe and demand more of it and less of coffee i.e. the demand for tea will rise and that of coffee will fall.
3. law of diminishing marginal utility.
The additional benefit which a person derives from a given increase in stock of a thing diminishes with every increase in the stock that he already has.
Example1. When I am in hungry. I ate 1 mango. Again I ate another mango. The utility of the second mango is less than that of 1st mango. Then utility declines. Again 1 ate 3rd mango. the utility of the 3rd mango will be less than that of 2nd mango and so on.
Example2. When I ate 1st chocolate. It is so tasty. And again I eat another chocolate. The utility of the second chocolate is less than that of 1st chocolate. And it declines zero.
When the total utility rises, the marginal utility diminishes.
4.Consumer surplus
Consumer surplus= What a consumer is ready to pay – What he actually pays.
Example1. When I am going to shopping to buy a shirt. Actually my willingness to pay is 1000 rupees, but the seller told the shirt is 1200. Finally I bought the same shirt @800 rupees.
Here 200 rupees is the consumer surplus.
Example2. When I and my mother going to shop to buy a saree. Our willingness to pay is 2200 rupees, but the seller told the saree price is 3500 rupees. My mother bargain the saree finally we buy the saree @1800 rupee. Here 400 rupees is the consumer surplus.
5. Producer surplus.
Difference between the price producer is willing to sell and the price actually sold.
Example1. My brother run the bangles business. One day iam going the shop to collect the money from customers as cashier. As one customer seeing the bangles actually my willing to sell is 100 rupees but I sell the bangle as 140 rupees here 40 rupees is the producer surplus.
Example2. My friend running the fruits business. One day iam going the shop to sell the fruits. Actually my willing to sell is 50 rupees but I sell the fruits as 100 rupees here 50 rupees is the produce surplus.
Complementary goods are those goods which are consumed together or simultaneously.
Example1… Tea and sugar are used together(a fall in the price of tea, will cause a rise in the demand for sugar).
Example 2…Pen and ink are used together( a fall in the price of pen, will cause a rise in the demand for ink).
Example3… automobiles and petrol are used together.(a fall in the price of petrol-driven cars would lead to a rise in the demand for petrol).
2.Substitute goods.
Substitute goods are those goods which can be used with ease in place of one another.
For example1. When iam going to a hotel I am hungry and I love biryani but on that day the biryani is not there instead of I eat chapati.
For example 2. Tea and coffee. ( if the price of tea falls, people will try to substitute it for coffe and demand more of it and less of coffee i.e. the demand for tea will rise and that of coffee will fall.
3. law of diminishing marginal utility.
The additional benefit which a person derives from a given increase in stock of a thing diminishes with every increase in the stock that he already has.
Example1. When I am in hungry. I ate 1 mango. Again I ate another mango. The utility of the second mango is less than that of 1st mango. Then utility declines. Again 1 ate 3rd mango. the utility of the 3rd mango will be less than that of 2nd mango and so on.
Example2. When I ate 1st chocolate. It is so tasty. And again I eat another chocolate. The utility of the second chocolate is less than that of 1st chocolate. And it declines zero.
When the total utility rises, the marginal utility diminishes.
4.Consumer surplus
Consumer surplus= What a consumer is ready to pay – What he actually pays.
Example1. When I am going to shopping to buy a shirt. Actually my willingness to pay is 1000 rupees, but the seller told the shirt is 1200. Finally I bought the same shirt @800 rupees.
Here 200 rupees is the consumer surplus.
Example2. When I and my mother going to shop to buy a saree. Our willingness to pay is 2200 rupees, but the seller told the saree price is 3500 rupees. My mother bargain the saree finally we buy the saree @1800 rupee. Here 400 rupees is the consumer surplus.
5. Producer surplus.
Difference between the price producer is willing to sell and the price actually sold.
Example1. My brother run the bangles business. One day iam going the shop to collect the money from customers as cashier. As one customer seeing the bangles actually my willing to sell is 100 rupees but I sell the bangle as 140 rupees here 40 rupees is the producer surplus.
Example2. My friend running the fruits business. One day iam going the shop to sell the fruits. Actually my willing to sell is 50 rupees but I sell the fruits as 100 rupees here 50 rupees is the produce surplus.
No comments:
Post a Comment