Ohh Yeah!! Exams are Finally Completed With These Solutions..

Situation 1:
    To analysts, Indian industry will be able to take advantage through offering products at low prices.
Concept:LAW OF DEMAND
                     It states that quantity purchased varies inversely with price or we can even say that when the price of goods increases then the demand for that good decreases.
Justification:
         We can observe that when the price of some product decreases people start purchasing that product and because of this the demand for that product increases for that time the situation comes under law of demand.

Situation 2:
     Many star hotels routinely offer unlimited buffet meals.
Concept:LAW OF DIMINISHING
                  MARGINAL UTILITY
                        It state that the two more of goods that one obtain in a specific period of time,the less the additional utility derived from an additional unit of good.
Justification:
        When the consumer start eating meals at starting he/she is getting good satisfaction for certain time but later the satisfaction level decrease because diminishing happens in consumption.

Situation 3:
         Often, unseasonal price fluctuations are observed in case of fruits.
Concept:PRICE MECHANISM
                       It is a manner in which the price of goods and services affect the supply and demand of goods and services in various situations.
Justification:
       During festivals lessons the demand for the fruits increases and because of that price also increases for that demands but after the festival the demand decreases as well as the price here we can observe the fluctuation of price.

Situation 4:
     Theater artistes/performers performing in multiple cities/events.
Concept:MOBILITY OF INPUTS
                         Transferring of goods and services and it will be available at low cost without any scare when compared.
Justification:
         We can observe that there will be change in place and get benefited with more money when there is transfer for artists, that means here the mobility is present for theatre artists.

Situation 5:
       Three prospective location for a large retail outlet- Location 'A' offers 750 net benefit units, location 'B' offers 900 units and location 'C' offers  850 net units.
Concept: OPPORTUNITY COST
                       It is also known as alternative cost, it is the value of the choice in terms of best alternative while making a decision.
Justification:
         The retailer would select location 'B' because the outlet produced by 900 units which is actually because of the demand from the consumer which is very high.