Saturday, August 11, 2018

These are the concepts which are related to our daily life

1.Opportunity cost :-
                            Take any two product chose any one which you getting benefit and sacrificing another, to getting more benefit in that is known opportunity cost.

Example:-
        1.One day my father ask me choose any one mobile between Samsung and MI phone. I have choose the MI phone because it give more benefit with the low price.
        2. After my graduation I am searching for MBA college ,after giving MAT exam I have got 10 college, within 10 college I have choose 1 college which give more benefits for placement for future.

2.Budget line:-
                   Combination of all products which you buy within the budget line for daily use is known as budget line .

Example:-
        1. My mother gave me 500 rupee to buy some stationery items for daily use ,after i buy some stationery the total 450 and rest 50 rupee I buy the chocolate for me.
        2. My mother gave 200 rupees to buy chicken and the 1 kg of chicken was 180 rupees and rest 20 rupees i bought 4 eggs.

3.Producer Surplus:-
                    The producer sells the goods to buyer the difference between amount which he actually given price and he sold at some price and gets benefit it is known as producer surplus.

Example:-
        1. One day i am buying the shirt of brand Puma the price of  shirt was 1500 rupees and the seller has buy at 1100 and he sells to buyer at 1400. The 200 was getting benefit by the producer.
        2. One day I gone to D-MART to buy snacks the producer putting his own price to sell the product.

4.Consumer Surplus:-
                                The consumer buys some goods from the seller the difference amount which he seller has deducted from the product and sells the good to consumer and consumer gets benefit that is known as consumer surplus.

Example:-
       1. One day I have gone to join at TIMES institution for preparing MBA entrance examination the fees was 35000 rupees and we ask to deducted some amount and he told the price was 33000 rupees
and we got 2000 rupees as benefit.
      2. One day I want to buy the laptop the price of laptop in the market was 50000 rupees after bargaining he gave at 45000 rupees and we got 5000 rupees benefit.

5.Inferior Goods:-
                      When the person income increase he will move from inferior to superior good for his satisfaction to buy all premium goods at that situation.

 Example:-
          1. When my sister's income increase she gave me treat at Mayfair hotel and before she gave at normal restaurant.
          2. When my fathers income has increase he bought new LCD television to home and before we using the normal television
                   








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