Concept 1. Law of demand
The customers of Kellogg's cornflex are always willing to buy, but once its price rises, the demand gradually decreases.
Here, the law of demand is applied. As it says as a little increase on price in the product there will be decrease in dwmand aswell.
Concept 2 . Utility
People take kelloggs for more tgan 20 years. And now, when ever they have it after a certain time, the taste of the cornflex get used to and they are nkw not willing to take it because they have eaten so much that there utility has reached its level.
Concept 3 . Production concept
With one single input of capital in the cornflex flavour, there will be maximum output it can get out from it.
Concept 4. Price elasticity of demand
Price elasticity of demand is the measurement of how much the quantity demanded of a good responds to a chanbe in the price of the good.
It also reach with the substitute.
As baggery came with less price, kelloggs reduce its demand, here, as the substitute came,the demand of tge other one reduced.
Concept 5 . Indifference curve
Here , with kelloggs therr is a combination of two goods, that is
Kelloggs cornflex( honey flavour),
Kelloggs cornflex (dry fruits flavour)
Here, as both honey and dryfruits is healthcentric, then the satisfaction level and utility are making the consumer indifferent.
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