LAW OF DEMAND
When the price of product or good increases then quantity of demand of that product decrease. And when the price of product or good decrease then quantity of demand of that product increase. That's called "law of demand".
When the price of product or good increases then quantity of demand of that product decrease. And when the price of product or good decrease then quantity of demand of that product increase. That's called "law of demand".
Example- Normally the price of pulses is 70 ruppes per kg. When price of pulses increases up to 200 rupees per kg, then many people starts consume less amount of pulses, like that when price of pulses decrease up to 60 rupees per kg then many people consume normally. Demand of a product inversly proportional to the price of the product
Example 2- In peak time flight rate are increased because of the high demand of tickets. Many people who can't afford the fair they r all going through train. So we can see demand for air ticket is inversely proportional to the price of tickets .
LAW OF SUPPLY
When the price of product or good increases, the quantity of supplied of good from seller side also increases. Like that price of product or good decrease the quantity of supplied of good from seller side also decrease. The relationship between price and quantity supllied is called "law of supply"
LAW OF SUPPLY
When the price of product or good increases, the quantity of supplied of good from seller side also increases. Like that price of product or good decrease the quantity of supplied of good from seller side also decrease. The relationship between price and quantity supllied is called "law of supply"
Example- In festival time all airline increase their ticket price. So all airline get profit in revenue because of high ticket price. So all airline decide that to fly more flight to get more revenue.
Example- During marriage season the price of saress increase. So the owner of saree shop gets more profit than normally. So he buy more saree from dealer and hires more workers. He opens his shop till mid night. This is the example of "law of supply".
INCOME
Income of a person can effect on his economy life in two types. 1) NORMAL GOOD. 2) INFERIOR GOOD.
When income and demand of goods both are fall that is called a NORMAL GOOD.
If the demand for a good rises when income falls the good is called an "INFERIOR GOOD".
Income of a person can effect on his economy life in two types. 1) NORMAL GOOD. 2) INFERIOR GOOD.
When income and demand of goods both are fall that is called a NORMAL GOOD.
If the demand for a good rises when income falls the good is called an "INFERIOR GOOD".
Example- In 1975 when India was ruled by president that time income of people fall down , and demand for a good also fall down. That is called a "NORMAL GOOD".
Example- When I am jobless , that time my income fall down and demand for a good rises then it is called "INFERIOR GOOD".
OPPORTUNITY COST
Opportunity cost is the cost of the next best alternative for which we have to sacrifice the intial or other alternative.
OPPORTUNITY COST
Opportunity cost is the cost of the next best alternative for which we have to sacrifice the intial or other alternative.
Example- yesterday I went to a hotel for eating biriyani but after reaching the hotel I decided to eat panner. We had to sacrifice the chicken.
Example- one day I booked a uber car to go somewhere. But suddenly I changed my mind and I booked an ola cab instead of user cab. That's called opportunity cost.
INDIFFERENCE CURVE Indifference curve shows the number of difference of satisfaction which we get from two product.
Example- one day I booked a uber car to go somewhere. But suddenly I changed my mind and I booked an ola cab instead of user cab. That's called opportunity cost.
INDIFFERENCE CURVE Indifference curve shows the number of difference of satisfaction which we get from two product.
Example-
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