Economy concepts related with day to day life

1.OPPORTUNITY COST:

                                          The opportunity cost means  to choosing the best alternative from different  option  and to sacrifice the other alternative to get more benefit.

EXAMPLE 1:-

                When i planned to do Pgdm.I searched many colleges.From that colleges i shortlisted three colleges(IBA,IFIM,ISBR).among these colleges i choosed IBA,because in compare to these 3 colleges IBA is worth for money and i got benefited more as compare to rest option.

EXAMPLE 2:-

              When i went to market to buy some dresses for fresher,there are a lot of option for me .a number of option are there BUT among those dresses i choose one company dress.which is looks good with a reasonable price.

2.DEMAND:-

                            Consumer's desire ,ability and willing to purchase goods at various price.  And   THE LAW OF DEMAND stats the inverse relationship between quantity demanded and price of that goods that is quantity demanded for a goods rises as the price falls, and vice versa,with all other things remain constant.

  

EXAMPLE:-1

                 As we all know,In IBA college Diwali holiday is starting from 4th November.so after the official announcement all my friends of Odisha try to book tickets in flight.so they are repeatedly  searching for flights in paytm,after repeatedly searching flights for that day...paytm increase the base price from 3000 to 4500.Here due to the high demand the price increases.

EXAMPLE:-2

              As we all know there was a restaurant near IBA college that Sri sai veg.That hotel gives only veg foods and his main customer was  IBA student,but IBA's most students were from kolkata and odisha, so they prefer non-veg restaurant.So they never prefer sri sai restaurant;; as a result that restaurant is closed. Here the demand of veg restaurant is low as compare to non-veg restaurant..so the hotel closed.

3.INFERIOR GOOD :

                          When a person income increases , then their is a change in a goods demanded and customer moves towards new products  but at situation the demand of old or existing goods decreases. The old goods is known as inferior good.
   

 EXAMPLE:-1

                   I always use to eat 10 rupees of icecream but one day dad give me 20 rupees and i went to buy 20 rupees of icecream and consumed it. 

  EXAMPLE :-2

                         When my elder brother newly joined in a job. That time his salary was very less.so he stayed at P.G.but after a couple of years of experience he got more salary.so he bought a flat.Here the income increases so the demand and lifestyle changes towards new thing.

4.Elasticity of Demand:- 

                                        As the price of good increases, the demand of that good may come down.

EXAMPLE:-1

                        I used to eat Manchurian near college for 35rs per plate but after getting him the demand, for that food. He had increased the price to 50rs. I had decreased to eat the Manchurian near him because of high cost,

EXAMPLE:-2

                        Near my hometown, there was a new mall which were selling clothes. At first, the prices where cheap. But after few days, the demand has increased for that shop. So, the manager increased price of clothes. Then, I started to buy clothes from an another mall.

                   

5.Indifference Curve: 

                            All combinations of goods they yield the same level of utility.

EXAMPLE 1:-

                       One day, I went to mall to buy a  being human jeans But it wasn’t available so I took a spykar jeans. I feel the same satisfaction with same jeans.

EXAMPLE 2:-

                        Last Sunday i went to DMart to buy some notebooks of Camlin . but there is no stock of Camlin notebooks,so  I bought Trunote notebooks.at the same price with the same quality i got the product.