As we know LAKME is a beauty product so, now let's see how economical concepts are related to LAKME stores.
1) Monopolistic Competition:- It is a type of imperfect competition so that many products sell products that are differentiated from one another depending on the brand and quality so as we know lakme is monopolistic in nature as they can be differentiated by other beauty products such as Maybelline and coloressence.
2) Utility:- It is the satisfaction that we get from a particular product so we can say here lakme is an utility for those who get satisfied from that particular product.
3)Law of Demand:- When the price of the product increases then the demand for the particular product decreases and vice -versa so if we consider here lakme if the price of the product decreases then automatically the demand for the product will increase and then it will lead to increase in supply.
4)People respond to incentives:- suppose, lakme gives discounts or buy 1 get 1 offers on its products then the people those who would not be opting for lakme would respond to those offers and start buying the products so the discounts were the incentives to which the people responded.
5)Price Discrimination:- It is a pricing strategy where identical or largely similar goods are transacted at different prices by the same provider . Suppose , here lakme stores does the same strategy they give different products which would be similar to each other but they give for different prices.
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