five term of economic

• law of diminishing return

• law o f supply 

• equi marginal principle 

elasiticity
 An elasticity is a measure of the sensitivity of one variable to another%  change that will occur in one variable in respond at % change in another variable .
example :-if the price of kit kat doubles, the quantity demanded for kit kat  will fall when consumers switch to less-expensive cadbury

law of diminishing return said  that  when certain input is increase with those input which is all ready fixed .

a point where then the  reached at some mean point then its output is decrease.

example:-  when the price of orange is increase  and it is increase at fixed price

then after some time if price remain high and cost of price of orange is constant  only then after

some time the price of orange is fall down.

The law of supply states that more of a good will be provided the higher its price; less will be provided the lower its price, ceteris paribus. There is a direct relationship between price and quantity supplied.

example :-  when the price of nagpur orange is increase then  the supply also became increased

the price of good and service is increase then the supply factor are remain constant.

equi marginal principle  state when consumer allocate  their all income among goods so  as to equate  the marginal utilities per rupees of  the expenditure on the last unit of each good purchased  this will also refer to as the consumer equilibrium  .

In the real world, a consumer may purchase more then one commodity. Let us assume that a consumer purchases two goods X and Y. How does a consumer spend his fixed money income in purchasing two goods so as to maximize his total utility? The law of equi­-marginal utility tells us the way how a consumer maximizes his total utility.

example  :- Suppose a man purchases two goods soap and dish wash whose prices are Psoap and Pdish wash respectively. As he purchases more of X, his MUsoap declines while MUdish wash rises. Only at the margin the last unit of money spent on soap has the same utility as the last unit of money spent on dish wash and the person thereby maximizes his satisfaction.

the production possibility  curve 

the production possibility curve is a hypothetical represention  of the amount of  two different good
that can be  obtained by shifting resource from the production of one to the production of the other the curve is used  to describe a society choice .
example imagine that you are hungry and decide to prepare maggi at home  and you know how to prepare a maggi and what  and how much  ingredient   should put in  maggi then you like the sour  taste of maggi then at thw when you putting a more amount of ketchup in it but you like the taste more so you put acces sos then result the maggi became more sour and last you can,t it .

So what is a production possibilities curve? Well, in basic terms, it is a curve on a graph that shows what possibilities an economy has where production is concerned. More specifically, it looks at different combinations of two goods that an economy can produce using certain resources and technology during a specific time frame.

if the price of kit kat is high then people will prefer the cadbury which is less expensive than kit kat  because both are giving same flavour so people do subsitutation .