Saturday, August 18, 2018

Let's travel by train

After getting the schedule of diwali holiday I was in a dilemma. If I want the earliest possible way to reach home,so travel via air is the best option for me.
But the ticket prices are shocking. it is near about 8000 for one trip only. If I want to spend much time in home and don't want to come back early, again I have to travel in flight and it is 8500.
So the total cost is 8000+8500=16000 for the total trip.
That means my diwali shopping can be affected.
If I choose to travel via train, ticket will cost near about 2000.
Total cost is 2000+2000=4000. But it will waste 3 days from my limited period of holiday.
Now I faced a trade off.
Travelling via air takes less time but very costly and travelling via train is cheaper but time consuming.
Now if I spend more money in traveling shopping will be less, because my parents income is fixed. An indifference curve can be drawn from here.

Marginal rate of substitution= slope
                    =-(MUs/MUt)
I don't want to spend much in traveling so that I can spend more in shopping.
Finally, I have choosen to travel through train,so traveling via air is an opportunity cost for me.

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