Features of economics : inevitable occurrences of our daily routine.

There are various things that we that we don't even observe in our day to day works. We come across lots of economic principles and ideas that go unnoticed by the maximum lots of us. Some of these can be easily explained by following terminologies.

People face trade offs: Trade offs are the occurrences of events that generally people face when they have to exchange any commodity or services that they like, for attaining anything that they like or need at any particular moment.

Examples

• I had 2 career options in front of me ; singing and corporate work. I chose to work in corporate world and henceforth sacrificed the singing career.
• I have 2 options to eat for lunch ; to eat chicken biryani or healthy sprouts. I chose sprouts to eat to keep check on my health rather than satisfying my taste buds.

Demand: This law explains that the demands of any particular object gets decreased as soon as there comes any increase in the price.

Examples

• I used to buy eggs from a shop. The price of eggs increased by Rs 10 per dozen, earlier which costed Rs 50 per dozen, costed Rs 60 per dozen. I reduced it's consumption, but as soon as the prices came down back to Rs 50 per dozen, I started to consume normally.
• I used to travel by my bike but after the price of petrol got increased, I had to travel by bus.

Elasticity: It is the percent change in quantity demanded with respect to the change in factors of demands.

Examples

 

I have various options in evening snacks. There are various sets of events that happen.

• With the increase in price of potato, the price of panipuri gets increased by Rs 10. So the demand of panipuri gets reduced.
• With the increase in the price of fruits, the consumption of fruit salad gets reduced.

Supply: The supply is what the producer is willing to supply the product in the market at a particular 

price. Producer can control either price or supply only, but not both at the same time.

Examples

• It was the commencement of college and I went out to purchase notebooks from stationary nearby and seeing that the demand of notebooks was really high due to students trying to purchase notebooks as early as possible, the shop owner increased the price by reducing the supply to take proper control over the demand.
• I came back from my hometown and reached the station late at night and had to go to my college. I had no available cabs around and when I finally found one cab, the cab driver charged a high amount, ultimately getting what he wanted. He saw that there won't be adequate supply and the price can be increased.

Diminishing marginal utility: This law states that when the consumption of any particular good happens continuously, the amount of satisfaction gets reduced. 

Examples

• I started watching a web series (Friends) in my computer and at a sitting, I watched it for 6 hours, I got full satisfaction and saw it for 6 hours. Next day I started to watch it again, but this time my satisfaction level got reduced to some extent. Again next day, my satisfaction got further reduced. It happened because of diminishing marginal utility.
• My under-graduation college was in Shimla. When I traveled from Delhi to Shimla during my graduation, the earlier few trips used to give me a great level of satisfaction. But later on, my utility started diminishing and the trips became less alluring.