1.LAW OF DEMAND: - Law of demand states that people
will buy more at lower prices and buy less at higher prices, other things
remaining the same.
It is
assumed that other determinants of demand are constant and only price is the
variable and influencing factor.
EXAMPLE: on Diwali when I went for purchasing
a laptop then I saw the price of Lenovo laptops was less as compared to normal
days and the company also offers some extra benefits including accessories and
antivirus software.
2.ELASTICITY: -An Elasticity is a measure of the
sensitivity of one variable to another. The percentage change that will occur in
one variable in response to a percentage change in another variable.
EXAMPLE:
Fortune Edible Oil is
widely available at a level of quality that meets the needs of most buyers. The
combination of a low price, relative to the buyer’s spending power, and the
fact that the product is sold by many different suppliers in a competitive
market, make the demand highly elastic
3.LAW OF SUPPLY: - The law of supply expresses the
nature of functional relationship between the price of a commodity and its
quantity supplied.
The law of
supply states that the higher the price, the greater the quantity supplied or
the lower the price the smaller the quantity supplied, other things remaining
the same. There is direct relationship between supply and price.
Example: - On Diwali when I went for purchasing
crackers on a crackers shop then I found that the price of crackers was high as
compared to unseasonal days because the supply is high on that occasion.
4.Law of Diminishing Marginal Utility: The more of a good that one obtains
in a in a specific period of time, the less the additional utility derived from
an additional unit of the good. Utility diminishes over the time; shorter the
time period more quickly marginal utility diminishes.
Example:
when I went for a party I feel very hungry then my friend offers a delicious Cake
I took 4 pieces of cake , when I took first two pieces I derived maximum
utility or satisfaction from these two pieces but as I consumed third and
fourth pieces of cake my utility diminishes in that shorter period of time.
5.Cardinal Utility: -Cardinal utility can be measured
on a scale and from rating we can calculate the satisfaction level of a
commodity which is consumed by a consumer.
Example: - My family decides to went for Dinner
in a Barbeque nation where we enjoyed dinner at the billing time a manager come
to ask us for the feedback about food and services and according to our
experiences we give 4 star rating out of 5.
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