Five topics of economics

1.EQUILIBRIUM

There is one point at which the supply and demand curves intersect. This point is called the market equilibrium. The price at this intersection is called the equilibrium price and the quantity is called equilibrium quantity. At the equilibrium price the quantity of the good that buyers are willing and able to buy exactly blances the quantity that sellers are willing and abke to sell. The equilibrium price is sometimes called the market clearing price becaue a the price, everon inthe market has been satisfied. Buyers have bought all they want to buy ad sellers hae sold all they want to sell.

EXAMPLE:

1.Announcement in the railway price hike after a month to rise demad in railway passes of different classes brfore it was applied. 

2.There is an exporter who is willing to export mangoes from Vizag to Banglore, he will increse the Vizag mangoes demand create a shortage and increses equilibrium quantity and equilibrium price. 

 PRICE ELASTICITY OF DEMAND

The price elasticity of demand measures how much the qantity demanded responds to change in price. Demand for a good is said to be elastic if the quantity demanded responds only slightly to changes in te price. The price elasticity of demand for any good measues how willing conumers are to buy less of the good as is price raises.

EXAMPLE:

1.If the price of Kurkure Tomato flavour doubles the quality demanded for kurkure Tomato will fall when consumers Kurkure other flavour. 

OPPORTUNITY COST:

Oppurtunity lost is opportunity cost

                          (or)

Sacrificing one oppurtunity for getting vest alternative is opportunity cost

EXAMPLE:

1.My grandfather is a farmer he cultivates the land with rice and wheat at the end of the result he is getting more income from wheat than rice here the opportunity lost is rice. 

2.When i was in graduate i used to study for exams before 1 day at that time i study late night the next day i was  very sleepy here oppurtunity cost is good night sleep. 

CONSUMER SURPLUS:

The difference between the amount consumer willingly and abke to pay to buy any product or services and the amount consumer actually pays to buy the products or services. 

EXAMPLE:

1.I went to shop to buy a bedsheet for Rs. 500 but after barging itcamefor 350, here I saved Rs. 150.is known as consumer surplus.

2.Me and five of my friends planning to go for movie.1 Ticket cost 200 and Total  six tickets Rs. 1200.In patym we got a coupon that buy 2 tickets  get 1 free.so we bought 4 tickets for 800 and 2 tickets were free. Hence we saved Rs. 400.

PRODUCTION FUNCTION:

PROUCION: Conversion of raw materials into finished goods.

EXAMPLE:

Converting of wheat flour into chapathi.

PRODUCTION FUNCTION: The activities which are helping in the conversion of raw materials into finished goods. They are two factors in production function:

1.fixed factor.   2.variable factor

1.FIXED FACTOR:

The factor which does not change along with the production is called fixed factor.
EXAMPLE:

In a class the capacity of class is 30, but the students are only 20. Here the fixed factor is desk  which does not change along with production.

2.VARIABLE FACTOR :

The fayor which doesnot change nge along with the production is called varible factor

Exmple:

In a class the teacher is teaching a class with the help of marker here the marker factor also changing along with the topics.