Law of Demand:
This law states that when the price of the product will increase, automatically its demand will decrease and vice-versa as this is the natural consumer's choice.
Example 1: When I go to big bazaar, I normally see that people take 1 packet of any product. But when we get offers then we will take extra thinking that it will get used after some days even though if they have that product.
Example 2: The hostel where I live has a fast food nearby. In that fast food he was selling paratha for ₹20 and the shop was full of rush all the time, but suddenly he changed the price to ₹35 which made their sales little lesser than previous.
Law of supply:
This law states that the suppliers supply more goods at a higher price than they normally will to supply it at a lower price.
Example 1: If 5 people want to buy a phone, and there is only one phone left out in the stock, the sales will be completely based on the demand for the pen. More supply of the phone is required to meet the demand.
Example 2: If there are many peoples who requires job, they will to take the job at low package also as there are many jobless people than the number of jobs available, the excess supply of unemployed people lowers down the package.
Utility:
This is the ability to satisfy ones or more needs or wants of a costumer by providing goods and services.
Example 1: One day I lost my shoe. I was finding it and I got 1 of the pair, I kept on searching for the 2nd one. And I got it after 10 minutes which led me a greater satisfaction as the 2nd shoe makes and completes a pair.
Example 2: If a person is thirsty, he will drink water for satisfaction. However after a certain point, the person is hydrated and it can be harmful to drink too much water past that point.
Indifference curve:
This curve is a graph which shows combination of two goods which gives the consumer equal satisfaction as well as utility.
Consumer Surplus:
It is the difference between the price that the consumers pay and the price they are willing to pay.
Example 1: Normally when we go for shopping we see a product and assume a price in our mind, but its price is different from the one which we are assuming, but we buy it as we need it. The difference between those two price is the comsumer surplus.
This law states that when the price of the product will increase, automatically its demand will decrease and vice-versa as this is the natural consumer's choice.
Example 1: When I go to big bazaar, I normally see that people take 1 packet of any product. But when we get offers then we will take extra thinking that it will get used after some days even though if they have that product.
Example 2: The hostel where I live has a fast food nearby. In that fast food he was selling paratha for ₹20 and the shop was full of rush all the time, but suddenly he changed the price to ₹35 which made their sales little lesser than previous.
Law of supply:
This law states that the suppliers supply more goods at a higher price than they normally will to supply it at a lower price.
Example 1: If 5 people want to buy a phone, and there is only one phone left out in the stock, the sales will be completely based on the demand for the pen. More supply of the phone is required to meet the demand.
Example 2: If there are many peoples who requires job, they will to take the job at low package also as there are many jobless people than the number of jobs available, the excess supply of unemployed people lowers down the package.
Utility:
This is the ability to satisfy ones or more needs or wants of a costumer by providing goods and services.
Example 1: One day I lost my shoe. I was finding it and I got 1 of the pair, I kept on searching for the 2nd one. And I got it after 10 minutes which led me a greater satisfaction as the 2nd shoe makes and completes a pair.
Example 2: If a person is thirsty, he will drink water for satisfaction. However after a certain point, the person is hydrated and it can be harmful to drink too much water past that point.
Indifference curve:
This curve is a graph which shows combination of two goods which gives the consumer equal satisfaction as well as utility.
Consumer Surplus:
It is the difference between the price that the consumers pay and the price they are willing to pay.
Example 1: Normally when we go for shopping we see a product and assume a price in our mind, but its price is different from the one which we are assuming, but we buy it as we need it. The difference between those two price is the comsumer surplus.
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