OPPORTUNITY COST
it is the cost of a decision in terms of the best alternative give up to achieve it. it is the best alternative forgone.
Example: Before joining the IBA college i have applied 3 colleges. in this 3 colleges my individual college score is 130.(siva sivani institute) & another college is ITM my score is 130. & IBA score is 150.
Here the opportunity cost is 130.
CONSUMER SURPLUS
The difference between the maximum price consumers are willing to pay for a product and the actual price.
Example:
It is done in my real life one day i went shopping i select one shirt . my willing to pay is 1500.
but the producer said the shirt price is 2000. i bargain the shirt. finally i purchased the shirt @1200.
here 300 is the consumer surplus. because it is the difference between the price consumer is willing to pay and consumer actually pays.
LAW OF DEMAND
Other things being equal, the demand is higher with the fall in price, and diminshes with rise in price.
Example:
We take as a gold . the prices is fluctuating everyday. Normally the gold rate is 31000 rps.
Suppose the prices of a gold comes down to 27000, then the demand for it gradually increases as the price has been decrease
it is the cost of a decision in terms of the best alternative give up to achieve it. it is the best alternative forgone.
Example: Before joining the IBA college i have applied 3 colleges. in this 3 colleges my individual college score is 130.(siva sivani institute) & another college is ITM my score is 130. & IBA score is 150.
Here the opportunity cost is 130.
CONSUMER SURPLUS
The difference between the maximum price consumers are willing to pay for a product and the actual price.
Example:
It is done in my real life one day i went shopping i select one shirt . my willing to pay is 1500.
but the producer said the shirt price is 2000. i bargain the shirt. finally i purchased the shirt @1200.
here 300 is the consumer surplus. because it is the difference between the price consumer is willing to pay and consumer actually pays.
LAW OF DEMAND
Other things being equal, the demand is higher with the fall in price, and diminshes with rise in price.
Example:
We take as a gold . the prices is fluctuating everyday. Normally the gold rate is 31000 rps.
Suppose the prices of a gold comes down to 27000, then the demand for it gradually increases as the price has been decrease
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