1)Spending behaviours constrained by budgets:
It is something like when customer goes for buying one particular thing but atlast he cannot help and buy multiple goods.
Examples :
1) When I want to buy one gift for my sister's birthday i will select one photo frame along with a teddy bear which I likes the most. And fortunately I have enough pocket money given my parents on that day i will end up buying the two products.
2)Whenever I go to Jaynagar I will fix somethings in my mind to buy but everytime I go there I will buy the all the other things along with that to satisfy my desire.
2)Income and Substitution effect :
They are actually combination of two effects . They are Income effect and the other is Substitution effect. Whenever price of a good increases it shows impact on the consumption that which can be changed or substituted with other. So these both are interrelated to each other.
Examples :
1) I will prefer normal coffee than going to cafe coffee day as my pocket money is very less i cannot afford for more.
2) Instead of buying branded shirts in malls I will always go to cheaper markets where I can buy many with the same amount.
3)Marginal Rate of Substitution :
The slope at any point on an indifference curve equals to the rate at which consumer is willing to substitute one good for the other then it si called as marginal rate of substitution. Here consumer substitute the good where indifference curves are not straight lines and marginal rate of substitution is same at all the points.In simple words it can be called as additional satisfaction that which you get by consumption of the substitute good.
Examples :
1) When I went to South Korea I bought 3 iphones and one camera but I am supposed to buy 5 iphones but not camera. Here I substituted 2 iphones with one camera but still im satisfied with the shopping.
2) Whenever i go to dominos instead of eating large pizza i will eat small one along with hot lava chocolate cake but still i feel more satisfied.
4) People face tradeoffs :
It says that to get one thing we like we have to give up another thing that we like.
Examples :
1) Me and my friend one day went for watching a movie Simha but on the same day bahubali was released , we really like both the movies and both the heros very much but still we managed to go to Bahubali as it is interesting with graphics. Here we sacrificed one movie and went to other just to satisfy ourselves.
2)On last year Diwali my mom bought new necklace instead of buying earrings for herself just because she liked necklace more than earrings.
5) Marginal Utility :
The benefit that which the ultimate consumers will be getting by consuming one additional unit of product or the service which is served is called as marginal utility.
Examples :
1) On saturdays I usually donot eat non vegetarian but one day my friend gave a party as she got first prize in presenation. On that day i breaked the rules and ate tummy full of chicken which really satisfied me.
2) When I eat one burger i am satisfied , when I eat another i am more satisfied, when I eat the third one Im fully satisfied.
It is something like when customer goes for buying one particular thing but atlast he cannot help and buy multiple goods.
Examples :
1) When I want to buy one gift for my sister's birthday i will select one photo frame along with a teddy bear which I likes the most. And fortunately I have enough pocket money given my parents on that day i will end up buying the two products.
2)Whenever I go to Jaynagar I will fix somethings in my mind to buy but everytime I go there I will buy the all the other things along with that to satisfy my desire.
2)Income and Substitution effect :
They are actually combination of two effects . They are Income effect and the other is Substitution effect. Whenever price of a good increases it shows impact on the consumption that which can be changed or substituted with other. So these both are interrelated to each other.
Examples :
1) I will prefer normal coffee than going to cafe coffee day as my pocket money is very less i cannot afford for more.
2) Instead of buying branded shirts in malls I will always go to cheaper markets where I can buy many with the same amount.
3)Marginal Rate of Substitution :
The slope at any point on an indifference curve equals to the rate at which consumer is willing to substitute one good for the other then it si called as marginal rate of substitution. Here consumer substitute the good where indifference curves are not straight lines and marginal rate of substitution is same at all the points.In simple words it can be called as additional satisfaction that which you get by consumption of the substitute good.
Examples :
1) When I went to South Korea I bought 3 iphones and one camera but I am supposed to buy 5 iphones but not camera. Here I substituted 2 iphones with one camera but still im satisfied with the shopping.
2) Whenever i go to dominos instead of eating large pizza i will eat small one along with hot lava chocolate cake but still i feel more satisfied.
4) People face tradeoffs :
It says that to get one thing we like we have to give up another thing that we like.
Examples :
1) Me and my friend one day went for watching a movie Simha but on the same day bahubali was released , we really like both the movies and both the heros very much but still we managed to go to Bahubali as it is interesting with graphics. Here we sacrificed one movie and went to other just to satisfy ourselves.
2)On last year Diwali my mom bought new necklace instead of buying earrings for herself just because she liked necklace more than earrings.
5) Marginal Utility :
The benefit that which the ultimate consumers will be getting by consuming one additional unit of product or the service which is served is called as marginal utility.
Examples :
1) On saturdays I usually donot eat non vegetarian but one day my friend gave a party as she got first prize in presenation. On that day i breaked the rules and ate tummy full of chicken which really satisfied me.
2) When I eat one burger i am satisfied , when I eat another i am more satisfied, when I eat the third one Im fully satisfied.
No comments:
Post a Comment