5 concept of microeconomics

5 basis concepts of Microeconomics are as follows:-

1). Consumer theory :-
Consumer theory focuses on decisions made by individuals about their purchases of good and services. The study shows how rational consumer will make decisions about using income.
For example -
1- vikas might purchase a car for his son or raju might buy a jeans for himself. In this example both vikas and raju are consumers
2-  Mohit and awasthi went to shopping to buy clothes for freshers .Mohit purchases some clothes but awasthi returned empty hand. In this example both mohit and awasthi had similar mind requirements but there is huge difference in taste,mind set and ability to spend

2). Law of diminishing marginal utility :-
Law of diminishing marginal utility states that as a consumer consumes more and more unit of a specific commodity, the utility of the specific commodity goes on diminishing.
For example - 
1- suppose a man is hungry he goes to the market and buy one plate samosha the first palte of samosha gives him immense pleasure so the utility of the first plate of samosha is high. If he order a second plate the utility will be less than the first plate.
2-  Rohit is very thirsty after the 1 half of the class he drink the 1st glass of water which gives him satisfaction. If he drink the 2nd glass of water the utility will be less as compare to the 1st glass of water

3). Supply :-
Quantity supplied is the number of the units that sellers want to sell over a specifiied period of time at a particular price.
Law of supply states that all other factors remain unchanged the supply of a good increases as its price increases
For example - 1- supply of veg puff will increases in the grocery store of indus business academy if the price of veg puff increases
2- if the price of the mobile Apple iphoneX  increases then the supply of the same product will increase in the market because the supplier wants to attain more profit.

4). Demand :-
Law of demand states that, all other things remaining equal, as the price of good increases, the quantity of that good demanded will decreases and vice versa
For example -
1- if the price of chicken briyani in paradise increases then the people tend to decrease the demand of ordering the chicken briyani.
2- if the price of a netflix subscriptions increases then the people will decrease the demand for that subscription opt for another options

5). Opportunity cost :-
Opportunity cost is defined as the price or amount or benefit that must be given up to obtain or achieve something else.
For example -
1- If you have to choose between shifting to a city either Chennai or Bangalore and you choose Bangalore then the expense or cost of shifting to Chennai will be the opportunity cost of your choice
2- if you have to choose a mobile between Apple and HTC and you choose to buy HTC then the price of Apple will be opportunity cost.