BUSINESS ECONOMICS CONCEPTS.
1).LAW OF DEMAND
As price of a commodity increases the demand for it decreases and vice versa.
Once i went to a vegetable market where the seller was selling cauliflower at high prices people stopped purchasing it and when the seller lowered the price the demand for it increased gradually.
2).LAW OF SUPPLY
As the prices increases the supply for the commodity increases and vice versa.
During diwali i saw as the prices of crackers and diya increased the supply of these commodity increased in the market and vice versa. As these products are the need of the hour.
3).PEOPLE RESPOND TO INCENTIVES
A rational consumer always respond to incentives as he want to get more benefits.
As once the restraunt owner offered me and my friends some extra incentives for the next visit. Seeing the discount percentage me and my friend decided to go for the next time.
4).TASTES AND PREFERENCES
Tastes and preferences causes shift in demand curve.
Earlier i had great liking for American nuts ice-cream but after sometimes the taste for this flavour decreased so this will cause shift in demand curve and that too leftward shift.
5).ORDINAL UTILITY
Ordinal utility is the measure of utility which is not defined in numbers. This generally a ranking process.
During my school days there were science exibition held where the ranking of each group was done according to their performances.
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