Economics is the part of our life. By knowingly or unknowingly we will use the concepts of the economics in our day-to-day activities. It tells us about how an individual makes a choice of allocating resources to satisfy their wants and needs.
If we closely observe our daily activities most of them are related to the Economic activities. Some of the Economic concepts in my daily life are given below.
Opportunity Cost:
On the day of Independence, I have a chance of either going for shopping or going to a Movie as there is a newly released movie in the theatre I decided to go to the movie. Here comes we can see the Opportunity Cost where I am missing out on the benefit of one alternative over another.
Law Of Demand:
I want to book a CAB from kanakapura to JP Nagar for going to the movie as it is a peak time for the cabs they are charging a high price so I thought of going by bus. Here comes the Law Of Demand, Where we can see a fall in demand for the cabs as the prices are high.
Budget Line & Indifference Curve:
During the break, I want to buy some Snakes and beverages as my budget is Rs.200/- I can Buy only limited snakes no or below the budget line, I will spend the money in such a way which will give me the same level of satisfaction on the Snakes and beverages, Here comes the concept of Indifference Curve.
Price Mechanism in Good Market:
After watching the movie I want to a shop to buy a flag, where the prices are very high because of the demand for the Flag at that time, this happens because of the (Dg>Sg) as the demand increases the price also increased by this the demand is decreasing and the supply is increasing, this happens till the Dg=Sg.
Consumers Surplus:
After I completed my shopping I want to get back to the hostel so asked the auto driver for the fare he asked me to give Rs.150/- but I am willing to pay not more than 120/- after bargaining he agreed for the price of Rs.80/-. Here comes the concept of Consumer Surplus, Where my surplus is Rs.40/- the difference between the amount willing to pay but the amount I actually paid.
Law Of Demand:
I want to book a CAB from kanakapura to JP Nagar for going to the movie as it is a peak time for the cabs they are charging a high price so I thought of going by bus. Here comes the Law Of Demand, Where we can see a fall in demand for the cabs as the prices are high.
Budget Line & Indifference Curve:
During the break, I want to buy some Snakes and beverages as my budget is Rs.200/- I can Buy only limited snakes no or below the budget line, I will spend the money in such a way which will give me the same level of satisfaction on the Snakes and beverages, Here comes the concept of Indifference Curve.
Price Mechanism in Good Market:
After watching the movie I want to a shop to buy a flag, where the prices are very high because of the demand for the Flag at that time, this happens because of the (Dg>Sg) as the demand increases the price also increased by this the demand is decreasing and the supply is increasing, this happens till the Dg=Sg.
Consumers Surplus:
After I completed my shopping I want to get back to the hostel so asked the auto driver for the fare he asked me to give Rs.150/- but I am willing to pay not more than 120/- after bargaining he agreed for the price of Rs.80/-. Here comes the concept of Consumer Surplus, Where my surplus is Rs.40/- the difference between the amount willing to pay but the amount I actually paid.
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