Economics concepts applied in FASTRACK

Law of supply:-

         If the special edition of Fastrack watch is released at high price .Less customers will buy the product.If the Fastrack will sold the watches at various prices all types of customers will buy from low to high prices. Fastrack will supply the watches at higher prices because selling a higher quantity at a higher price increase revenue.

Law of Demand:-

       If Fastrack will sell the watches at the higher prices the less people will demand the good.So the customers will avoid buying the product that will force them .

Price discrimination:-

          Fastrack identifying different market segments such as domestic and industrial users with different price elastic.For example  Fastrack watches is available for lower price to business class people and luxury people. In contrast fastrack watches are not selling well company will reduces the cost of the watches.

Opportunity cost:-

                     

              If the fastrack with asset such as capital is used for one purpose,the opportunity cost is the value of the next best purpose the asset could have been used for opportunity cost analysis is an important part in company's decision.

Consumer plus:-

                 Consumer plus always increase as the price of a good falls and decreases the price of a good rises if fastrack willing to pay 50rs for the first unit of product A and Rs 20 for its 50^th unit are sold at Rs.20  for its 50^th unit are sold at Rs.20 each then 49 of units were sold at consumer surplus