1) Laws of demand:-
It says that price is indirectly proportional to the demand.
If price decreases then demand increases.
Example:-
If the price of milk decreases then demand also increases, as there is no substitute of this particular product.
2)People respond to incentives:-
It says that if incentives are being offered to a customer the automatically he/she gets attracted towards it
Example:-
If there is any offer or discount given in a particular dress then all the customers are attracted towards it.
3)Opportunity Cost:-
The concept says that we give up something for another thing.
We cant have the both at the same time.
example:-
Suppose we go for shopping and we have a limited budget.
Fortunately two dresses are chosen by me and I want to buy the both dress.
Since my budget is less so only one I can afford.
I have to give up one dress so that i can buy one.
The one which i am sacrificing is the opportunity cost.
4)Utility:-
It is the satisfaction we get after using one product or it can be many things
Suppose we go to a place and satisfaction we get there after going is the utility.
Example:-
We went to a hotel and ordered biriyani.
The satisfaction we get after having that biriyani is the utility of that product.
5)Diminishing Marginal Utility:-
The concept says that as we increase our consumption of any product then the marginal Utility of that product decreases.
Example:-
We went to KFC and ordered one bucket of chiken for myself.
After having 4 pieces, the satisfaction level decreases.
I can't have more of it. This concept is known as the Diminishing Marginal Utility.
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