LAW OF DIMINISHING MARGINAL UTILITY
When consumer consume any additional unit for additional
satisfaction a point will reached in which it start decreases and after some
additional unit consume get negative.
Example – when I go to mess for dinner I eat some chapatti
for satisfaction when I start take additional unit of chapatti I get more
satisfaction but when I eat continuously then there is a point after that
marginal utility start decrease and after some time it get negative.
OPPORTUNITY COST
Opportunity cost is the value of any product and services
which we lost or give up to get another choice or it is the value of next best
alternative choice
.
.
Example – one day my friend told me that he wants to give
treat to me on Friday night on dinner for rupee 100 but on the same day there
is a good food on our mess so I rejected his proposal and I went for dinner on
mess so I give up one best opportunity so the value of that opportunity which I
give up is called opportunity cost for me.
UTILITY
It is the satisfaction derived by a consumer by consuming
any product or the value of goods and services is called utility.
Example –
I like noodles in my mess so when I consume noodles I get
maximum satisfaction but my friend Ram who do not like so much noodles so when
he consumes he get minimum satisfaction from noodles so for same product
utility may be differ from person to person.
LAW OF DEMAND
Law of demand refers that when price of any goods and
services increases then demand of goods decreases but when price of any goods
decreases then demand of goods increases.
Example –
I go saffron restaurant when it gives discount to us I see their
on that days crowd is more in comparison to the another day it happens because
of law of demand it means when price of goods in restaurant decreases then
demand of that goods increases
LAW OF SUPPLY
It is the situation when price of goods and services
increases then supply also increase but when price decreases supply also decrease
.
.
Example - I went market to buy vegetable I see their
when price of some vegetable is high then supply is also more but when price of
any goods are less then venders supply less vegetable. this happens because of
law of supply.
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