Saturday, August 11, 2018

Economics concepts


PEOPLE TRADE FACE OFF
 Leaving the thing which you like more and opting other thing which you like.
Ex :
1)    When I am in 6th class my father said he will buy a by-cycle to me. At that time all my friend have video game. I asked my father to buy both by-cycle and video game. He gave only one option to me. The by cycle cost is 4k and the video game cost is 800/- . I decided to buy by-cycle .
2)    One fine day I got invitation from my family member that he has house opening on 12-11-20016 day . on the same day all my friends had planned a trip to visit one rural place. Bot the events are important. One side meeting all my family members and the other side having fun with friend by trip. I  finally went to the house opening .
CONSUMER SURPLUS
At what price the consumer willing to buy the product  but purchasing it less than what he expected.
Ex : I want to buy a teddy bear to my  for 1000/- . sales man said the cost of it was 1350/-. I started bargaining from 750/- . He sold it for 850/-. The money what you have expected and what has remaining was called consumer surplus



PRODUCE SURPLUS
When the producer gets more amount than what he is willing to sell the good
Ex :
1)    I went to a movie which was released on the same day and a bought 5 tickets for 1000 /- . One of my friend Was not feeling well and and was dropped. I have one excess ticket with me. I am waiting for the person how want to purchase . mean while a person came to me and asked me foe the excess ticket. I said I have one cost off 200/- and I want to sell that ticket for 300/- but he said that he will give me 500/- for that ticket. The extra 200/- was producer surplus.
2)    I have an old mobile, and I want to sell it for 500. I have ordered a new mobile and kept my old mobile as exchange. He came and checked and said that you will get 2000/- off on your new mobile. The 1500/- was producer surplus.
UNDERSTANDING CONSUMER BEHAVIOUR
Analysing the consumer behaviour when he buy the products or using services. They select according to the quality , price , requirement  and service.
Ex :
1) I always drink pulpy orange. Because it has a unique taste and different form other beverages .
2) My father always buy cello pens because of his comfort level and the usage .

PRODUCTION FUNCTION
The amount of input kept for production process  using resources and the amount what you received in the output as goods.
Ex :
1)    My friend Preparing for CA exam from past 4 years and kept so much of effort and tactic to crack it. Worked day and night for that. Finally he passed by his effort.
2)    A farmer feeds grass to the cow for some times in a day. Parallel to that it gives milk twice a day.



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