Relationship between Economics and Hair.

5 Economics concept follows in PARACHUTE COMPANY :
1.LAW OF DEMAND :(Demand of production)
            Before 10-15 years the price of the Parachute oil was high as compared to now.The demand of the product increases day by day for quality as well as for its brand loyalty. The demand increases so the supply also increases and the price decreases.
2.PRICE DISCRIMINATION :(Price discrimination by self selection )
               Parachute oil available in the market everywhere with different price variation, starting from Rs 25 to Rs 600. So that everyone can afford the product.
3.PEOPLE RESPOND TO INCENTIVES:
               If you buy 750 ml parachute oil then, you will get 50 ml advanced coconut oil free.
       Company is  trying to influence customer to purchase jasmine oil by providing 50ml coconut oil free.
4.OPPORTUNITY COST:  
           In market different type of oils available and the demand for the oil also increases still customer opt for Parachute oil because of its product quality and brand loyalty. Here the opportunity of using parachute oil can be fulfill.
5.TRADE OFF: 
           People easily get bored by using similar product every time because of that and the diminishing starts. To avoid that diminishing, company produce different type of product like  advanced coconut oil, pure coconut oil, hot oil specially for winter, Jasmine oil etc.