How the price of mobile phone drops to attract demand?
We have often come across this phenomenon when a new phone is being launched it is priced relatively high but after a period of like 2 months, we can see the price is reduced. What leads to such decisions is known as the law of demand.
The law of demand states that there is an inverse relationship between price and quantity demanded of a product. This means as price increases quantity demanded decreases and vice versa.
So if we examine the mobile phone market scenario we can clearly see this law being applied as the sellers are reducing their price to attract more quantity demand for the product. Since a certain time has also passed by the demand is affected. Thus, by reducing the price the seller creates interest among the buyers to buy the product
Why Reliance Jio providing Unlimited data?
Reliance Jio was a game changer in the telecom sector as in overnight it got a huge amount of subscribers. Jio provided free services for internet usage, voice calls, SMS services for over 6 months of existence. Now the question in all of our mind is why they chose this path?
The answer is simple they applied the utility concept of economics. Utility concept states the amount of satisfaction one derives from their consumption activity. By providing all its services for free Jio provided utility to its customers. As a customer myself I know that every individual wants to get the highest satisfaction possible by spending the least amount of money possible. Here Jio provided everything practically free of cost. It realised that want for satisfaction among its targeted customers and today it is the leading telecom brand in India.
Why today people like being ripped jeans rather than bellbottoms as seen earlier?
During the 70s we saw a huge demand for the bellbottom pants or trousers. It was so much in fashion everyone was seen wearing them. Look into your family album you might see your father in them. Don’t be shocked by his attire then compared to now. This is because the taste and preference of the buyer influence the demand for any commodity. During that time we could see a huge demand for bellbottoms as that was the taste back then
If you compare it with present well, we like ripped jeans no matter how costly it is. We can see a huge demand for ripped jeans now as the taste now is for that in the market. Hence our closets are filled with torn or ripped jeans which my mother cannot tolerate by the way. Now she cannot tolerate as her taste is different compared to mine. Hence, her taste guides her demand and so does mine.
Why you need to increase the labour force and introduce new machinery in order to increase output?
Suppose you are introducing a new product in the market what will be your main concern? Probably it will be how much quantity you want to produce. In order to produce you need various things such as raw material, capital, labour machinery, etc. a combination of this various factors is responsible for what is called the Production Function.
The production function states that in order to produce a quantity of product you a possible combination of Labour(L) and Capital(K). In order to produce this new product, you will need a certain amount of capital for this instance machinery and labour force. With the combination of labour and capital, the desired quantity can be achieved.
Why we love participating in cultural programs of our college?
Here at IBA we participate in many cultural programs such as Guru Purnima, Independence day, Burning Bush cultural etc. but why do we do it. Do we do it because are passionate or emotional about it or are doing it cause of popularity and to show off the fact we are better than our counterparts? This phenomenon is known as Rational Behaviour.
Rational Behaviour refers to the fact we make decisions based on reasons rather than emotions. So whenever we are participating in a cultural event remember the fact we are rational. We have our various reasons for that decision which compels us to perform at the events.
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