LAW OF DEMAND:-
It states that the other factor being constant, price and quantity demand of any good and service are inversely related to each other. when price of the product increases,the demand for the same product will fall.
EXAMPLE:-
when price of kiwi goes from Rs 100 to Rs 60, the quantity demand will go up. the people who are not willing kiwi at Rs 100 now they can buy in Rs 60.
SUPPLY CURVE:-
It is a graphical representation of the relationship between price of the good and the quantity of the good in a give point of time.
EXAMPLE:-
If the quantity supplied of coffee will decrease than the curve moves to left. The higher price will repel consumer from buying more quantity.
OPPORTUNITY COST:-
The value of something that must be given up to acquire something.
EXAMPLE:-
At ice cream parlor, you have to choose between chocolate and coconut tender ice cream.When you choose chocolate the opportunity cost is the enjoyment of coconut tender.
INFERIOR GOOD:-
The good whose demand decline when income rise.
EXAMPLE:-
When the consumer income is low, people use bus,if the consumer income increases, people stop using bus.
SUBSTITUTE GOOD:-
Two alternative used for same purpose.
EXAMPLE:-
When price of the pepsi rises, consumer will shift to coca cola.
It states that the other factor being constant, price and quantity demand of any good and service are inversely related to each other. when price of the product increases,the demand for the same product will fall.
EXAMPLE:-
when price of kiwi goes from Rs 100 to Rs 60, the quantity demand will go up. the people who are not willing kiwi at Rs 100 now they can buy in Rs 60.
SUPPLY CURVE:-
It is a graphical representation of the relationship between price of the good and the quantity of the good in a give point of time.
EXAMPLE:-
If the quantity supplied of coffee will decrease than the curve moves to left. The higher price will repel consumer from buying more quantity.
OPPORTUNITY COST:-
The value of something that must be given up to acquire something.
EXAMPLE:-
At ice cream parlor, you have to choose between chocolate and coconut tender ice cream.When you choose chocolate the opportunity cost is the enjoyment of coconut tender.
INFERIOR GOOD:-
The good whose demand decline when income rise.
EXAMPLE:-
When the consumer income is low, people use bus,if the consumer income increases, people stop using bus.
SUBSTITUTE GOOD:-
Two alternative used for same purpose.
EXAMPLE:-
When price of the pepsi rises, consumer will shift to coca cola.
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