ECONOMIC CONCEPT RELATED TO INDIGO

         ECONOMIC CONCEPTS RELATED WITH INDIGO                                                                (AIRLINE)

$ PRICE DISCRIMINATION- In this INDIGO (airline) charging different consumers different prices for same product offered.

For example- Business class charges are high, Economy class charges are low as compare to business class.

$OLIGOPOLY- In this market if one company lowers the prices of air fare other company do likewise to remain competitive. Same INDIGO do to remain in market. In this the cost of starting a business in an oligopoly, industry is usually high, the number of firms entering it is low.

$  SUPPLY - Willingness and ability of Indigo to offer more flights from more cities at various prices.

$ DEMAND – Consumer ability, desire and will to purchase and travel at various prices from various city.

$ PEOPLE FACE TRADE OFF- Sometimes price are low but timings are not suitable for you and at the same time price are high for suitable timings. That’s why people face trade off whether to go by plane or not.