Thursday, August 16, 2018

Economics concept in story

Hello everyone,


                         Till now i was discussing about different economics concept and its examples. Well today i'll be telling a story. Interesting isn't it! Ya i will be telling you all a real story or say happening.and we will search, if is there any economics concept hidden in that story. this seems to be interesting stuff. isn't it!.  so lets get started.



Alright, last saturday me and my college's colleague planned to go outside of campus for dinner. Because mess use to close on every saturday after lunch for cleaning purpose, that's why we planned to go outside and have some non-veg stuffs. we went at particular restaurant (sorry i am not getting the exact name of that restaurant) which is approx 1 km of walking distance from our college.


So we arrived their and made pair, so that we can share our food and bill, alright. so me and my partner ordered our favourite dish  2plates of chicken biryaani and chicken tikka. and second pair since they were vegetarians ordered their favourite dish 2 full plates for veg-noodles. so after some gap of time, all dishes came to our table. we started eating and found all dishes tasty. Me and my partner were done with our dinner after some time. But on the second hand, my other colleagues who had ordered full plate of noodles, which was huge in quantity were denied to eat even a another bite after eating a certain amount of noodles. So me and my partner finished rest of the noodles. I asked them reason of not finishing all foods. they said, they were done.
And finally we paid our bills and came back to our college.






So are you able to find any economics concept in this story. Please give it try.






Okay let me describe, If you go through this story you will find a economics concept from 2nd pair activity. Which is  "Law of diminishing marginal utility".



So, Law of diminishing utility says, When consumer consumes any product continuously, satisfaction derive from additional unit decreases and further get negative.



So here, with 2nd pair what happened is, when they consume noodles first time they got maximum satisfaction, but when they keep consuming that noodles, their satisfaction start decreasing with every extra unit  and a point come when they refuse eating any further unit because their satisfaction level get negative.




Let understand by hypothetical graph

Suppose 2nd pair(vegetarian) get MU 10 when they consume 1st time, and MU 8 in second time and it keep decreasing till MU become negative which is (-)5, where they stop eating noodles.


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