Have you ever realized that Economics plays a vital role in our lives or that it exists in a very incognito way?
Well, I found about this through my economic class in my PGDM program. In my life to be exact economics plays a very important role. Mostly during when I go out to eat on a Saturday evening. Every Saturday my college mess remains closed for leaning purpose and everybody has to go out to get dinner. now the biggest dilemma that I have is what to eat that will fit my budget for that week. now a typical outing for dinner needs to have a bread or rice. I'm happy eating both be it a nun or a plate of biryani. With this, I form an Indifference curve as I can have both or a combination of the 2 for my dinner.
An Indifference curve shows the various combination of two goods that provide the same level of satisfaction. So to find the same level of satisfaction I make choices every week on which combination of 2 to have for dinner.
Sometimes I substitute one nun for little more of biryani and sometimes I do the opposite. whatever the possible combination is I receive the same level of satisfaction.
Now every time I substitute a nun for more biryani I perform something called Marginal Rate of Substitution(MRS). This indicates the rate at which I substitute one product for another to receive the same level of utility or satisfaction.
So now you know how economics reflects in
my day to day life.
Well, I found about this through my economic class in my PGDM program. In my life to be exact economics plays a very important role. Mostly during when I go out to eat on a Saturday evening. Every Saturday my college mess remains closed for leaning purpose and everybody has to go out to get dinner. now the biggest dilemma that I have is what to eat that will fit my budget for that week. now a typical outing for dinner needs to have a bread or rice. I'm happy eating both be it a nun or a plate of biryani. With this, I form an Indifference curve as I can have both or a combination of the 2 for my dinner.
Sometimes I substitute one nun for little more of biryani and sometimes I do the opposite. whatever the possible combination is I receive the same level of satisfaction.
Now every time I substitute a nun for more biryani I perform something called Marginal Rate of Substitution(MRS). This indicates the rate at which I substitute one product for another to receive the same level of utility or satisfaction.
So now you know how economics reflects in
my day to day life.
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