Saturday, September 1, 2018

Economics concept I applied when I purchased our car

In 2017 my father was planning for buy a car then we visited the Maruti suzuki show room without deciding about what to buy. So we asked the dealer to told about the features and price of their all car
then they suggest us 3 cars 1. Baleno, dezire,swift, . Again in all cars there are 4 model with different features like vxi,vdi,lxi,zdi,zdi+ etc. So we confused what to buy and we face tradeoffs at that time
Then. After came to home we see that Dezire is more suitable to our budget and which having more feature than swift and quite similar to baleno and price is also less than baleno . so here we did Cost benefit analys here but we loose the oportunity cost as the looks and design of baleno which having best design from all of them.

Economics concepts. people face trade offs : It is the situation where customer face problems whe buying something due to various options.
Cost benefit analysis: It is the concept wher customer decide what to buy or not to buy by comparing the net benefit and cost of that goods or services.
Oportunity cost: It is the cost hat we sacrifice to get an alternative product


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