Economics Integrated With Our Life

Economics Integrated With Our Life:

Whether directly or indirectly economics is been integrated with our life constantly.some of the live examples which are been related to our life with the following concepts

1.Price Mechanism:

Often,unseasonable price fluctuations are observed in case of fruits.

Explanation: When price fluctuates automatic the supply & demand changes for fruits when price increases it impacts both supply & demand. In supply it is a direct relationship and in demand it may changes

2. Opportunity Cost:

Three prospective locations for a large retail outlet-Location 'A' offers 750 net benefits] units, location 'B' offers 900 net benefits units & location 'C' offers 850 net benefit units

Explanation: Here we are selecting one location and sacrificing the another location. The net benefit received for location for sacrificing the another location is called opportunity cost

3.Law Of Demand:

 What happen when price of oranges increases/decreases 

Explanation: Let us take an example if a consumer have Rs 50 he/she buys 10 oranges and if the orange rate decreases by Rs 40. He can buy 13 orange we can observe that when price increases the quantity demand decreases and vice versa.

4:Law of Diminishing Marginal Utility:

 Many star hotels routinely offer buffer meals.

Explanation: Because as we consume more meals the satisfaction derives from meals decreases so consumer consume less & star hotel can save.

5.Income of a Person:

  we see more & more domestic tourists visiting beaches rather than religious places as seen earlier.

Explanation: As income of a person rises the demand for service or product also rises i.e, beaches. It is directly related the income of  a person