DAILY ECONOMIC

11. LAW OF DEMAND: The law of demand states that other things remain constant, price and quantity demanded of any good and services are inversely related to each other. When the price of the goods increases the demand of the good falls down. It also shows the behavior of the consumer when the price change in the market, assuming other factor affecting demand being constant.

     

      EXAMPLE: When there is sale in shopping mall we all run for shopping. 

j 2. UTILITY: The maximum satisfaction that we derive from consumption of any goods. It is the measurement of satisfaction that a consumer derives from the a particular product/goods.

       EXAMPLE: After having an ice cream I derieved maximum satisfaction.

33. OPPORTUNITY COST: A benefit, profit or value of something that must be given up to acquire or achieve something else. The cost of something which you give to get the other thing is opportunity cost.

      EXAMPLE: Ikea made a capacity of 9000 customers, but in the first day of launch there were 40000 customers therefore the rest 31000 customers were treated as opportunity cost of Ikea.

  4. INCENTIVES: People react differently when given incentives. Incentive is something that motivates human to do something or say perform something.

      EXAMPLE: When people go to shopping malls, they find a number of options which are incentives, thus, they do a lot of purchasing. 

  5. TRADE OFFS: Desire some attribute in product and missing some attribute, this is were people face trade offs. People choose among different things. They have to leave one thing, in order to get another one, that is trade-off. 

      EXAMPLE: While choosing among the food outlets people want to eat in are the trade offs they generally make. When they enter one, they will trade off with the other one.