Saturday, August 25, 2018

5 concept of economics

               Set -2

1) To analysts,indian industry will be able to take advantage through offering products at low prices

Ans) concept is Law of demand - 

As the price of the good increases , quantity decreases conversely,as the price of a good decreases quantity increases.
Therefore,law of demand has an inverse relationship between the price of good and the quantity demanded,other things remaining constant.

2) Often, unseasonal price fluctuations are observed in case of fruits .

Ans) Concept is Price mechanism-

It is an economic concept which means that the price of the product will be dependent upon the demand and supply for that product.
If there is an increase in demand,then prices will increase as a result of which there will be a movement in supply curve.

3) Supply curves for live sports events.

Ans) Supply curve is a graphical representation which shows the relationship between price of the product and the quantity supplied which the producers is willing and able to supply at a given price while other things remaining constant.

4)Three prospective locations for a large retail outlet- location A offers 750 net benefit units, location B offers 900 net benefit units and location C offers 850 net benefit units.

Ans) Concept is Opportunity cost-

Opportunity cost refers to the value of what we give up in order to choose something else. It  is also known as Alternative cost.

5) We often see keen interest especially among young men and women to participate in fashion shows.

Ans) Concept is Utility .

Utility is want satisfying power of a commodity to give satisfaction. It diminishes over time - the shorter the time period -the more quickly  marginal utility diminishes .

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