FIVE CONCEPTS OF ECONOMICS

1. LAW OF DEMAND
    Other things remain constant , when the price       
    of a good and service increases the quantity
    demanded of the goods and services
    decreases and when the price decreases the
    quantity demanded increases.

    Ex-In my home town in summer the price of the
          cauliflower increases so we decrease the
          use of cauliflower in cooking. And in winter 
          the price of the cauliflower decreases so we
          use more cauliflower in preparing food at
          home.

        - I used to be a customer of UBER cab service
          but after its hike in price I stopped using
          uber service.

2.THE LAW OF DIMINISHING MARGINAL
    UTILITY
    The additional utility derived from the
    commodity begins to decrease with the
    addition of every single unit of commodity in a
    specific period of time, this is called law of
    diminishing marginal utility.

    EX- I love Rosagula, a sweet from Odisha . Once
           my uncle came home with a packet of
           rosagula. Then I started eating rosagula
           and after 8th one  I stopped due to
           decrease in interest in rosagula. The
           excitement range is very less comparing
           between having 1st one and last one.

         - In the summer vacation of 2009  first time
           in my life I went to CHILIKA which is a  
           famous lake in Odisha. I really enjoyed the
           place then. After that I went chilika in 2012
           and 2014 for the second time and third
           time respectively. When l last time visited
           that place in 2016 for the fourth time I just
           could not enjoyed that much comparatively
           to the first time.

3. CONSUMER SURPLUS
     Difference between the price consumer willing
     to pay and consumer actually pays is Called
     consumer surplus.

     EX-Once I went to a Clothes store to buy a pair
           of shirt and pant. The cost price was 4999
           rupees. But after bargaining I bought at
           4300 rupees. So here the consumer surplus
           is 699 rupees.

         - Once I went to buy a pair of shoes. The cost
           price of the pair of shoes is 799 rupees .
           But I bought it at 550 rupees after
           bargaining . So here 149 rupees is the
           consumer surplus.

4. INELASTIC DEMAND
     There will be no change in demand even if the
     price changes.
    
     EX- In 3rd January 2017 the price of 1 litter
            petrol is 65 rupees but in 4th January  price
            of petrol suddenly increased to 68 rupees.
            But it is very essential for transportation so  
            the demand of petrol didn't change.

           - In Shivratri 2018 the price of the fruits
             increased dramatically but we bought a
             lots of fruits. Actually in India the price of
             the fruits increase dramatically in festive
             season but the demand remains constant.

5. Producer surplus
     Difference between the price producer  is
     willing to sell and price actually sold is called
     producer surplus.
 
     Ex-I went to buy a shirt. The cost price of the
            shirt is 699 rupees but after discount I
            bought it at 650 rupees. When I researched
            I came to knew the manufacturing price of
            the shirt is 300 rupees. So here the 350
            rupees is producer surplus.

           -Once I bought a dozen of banana at 40
            rupees. But the seller bought a dozen of
            banana 24 rupees. So here the producer
            surplus is 16 rupees