Concepts of micro economic with example

1)Law of Demand- The the law of demand States the relationship between price and quantity demanded.

Suppose I want to buy some Kiwi and suddenly it price get increased from Rs 120kg to Rs 180kg then the demand of the kiwi will automatically fall and it will be decreased.

I went to the market to purchase onion and then I saw that the price decreased from 50rs to 20rs so I bought 5 kgs of onion instead of 2 kgs of onion this is law of demand as the price decreases we tend to purchase more.

2)Consumer Surplus- The amount of money which a person is willing to pay for a good indicates the amount of utility derived from that good.

I went to shopping complex to purchase kurti it was for Rs 1500 but after bargaining the seller gave it for Rs 1000 so here, the difference amount is the consumer surplus i.e. Rs 500

As I am fond of footwears so went to Metro Plaza to purchase footwear there I saw an attractive shoe it price was Rs 2500 but after bargaining with the shopkeeper he provided me that particular shoe at Rs1800 so here Is 700 is Consumer Surplus. 

3)Producer Surplus- A producer surplus is a difference between how much of a good is willing to supply and how he receive in returns.

So my birthday is in next month I want to purchase a dress. Therefore I went to market A shopkeeper provide for Rs 3000 but the price was actually for Rs 2300 so here the difference amount earned by the producer i.e. Rs 700 is the Producer Surplus

If you went to market to purchase a bag which was Rs500 but the actual prices Rs250 so here the Rs 250 is Producer Surplus.

4)Indifference Curve- It is a good which represent the various combination of two goods which gives same level of satisfaction.

I love both pizza and burger,the pleasure which I get from eating one pizza and two burger is equal to the one I get from eating 2 pizza and 1 burger show my level of satisfaction is same but the inputs are different.

I am fond of both horror and comedy movies the happiness I get from watching horror films is equal to the happiness from a comedy one so my level of happiness is same only the medium is changed.

5)Opportunity Cost-

Tina buys a pizza and with that same amount of money she could have bought a drink and a hot dog. The opportunity cost is the drink and hot dog.

In ice cream parlor, I have to choose between chocolate and strawberry. When you choose chocolate, the opportunity cost is the enjoyment of the strawberry.