Saturday, September 1, 2018

how economics applied when im buying clothes in brand factory

People Respond To Incentives and Opportunity cost

Incentives is the nothing but the person tends to act or change in behaviour by offering rewards
I decided to buy an pair of dress i.e,jeans and shirt
I choose Brand Factory due to following factors
  • providing 50% offer in mrp price
  • providing 2000 worth coupons 
By the above incentives i selected brand factory to shop my clothes ,the pair cost is 4000 after discount and i got coupon worth of 2000.

Opportunity cost is nothing but giving up in order to get best alternative.
here, the cost and benefit is more in buying clothes in brand factory than its alternative.

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