LIFE IS FULL OF ECONOMICS

The concept of economics with examples

1) law of Demand:-

            The law of demand states that the consumer needs and willing to buy a product as well as they need the ability to pay for goods and services.

             It has the relationship with demand and price of any commodity, the demand as the quantity of demand decreases when the price of the goods increases as vice versa, the number of demand increases and the price of goods will decrease in a product or commodity.

example:-

• my real life example: the -my father has an electronic shop and it has a greater review of the products on (tower fan), in summer season we have limited no of products and the customers are willing to buy the product, the demand of the product goes up.

• I and my brother went to the supermarket to purchase a bed for my hostel and then I saw the price of the bed is decreased by 20%  and so I brought the product of 2 bed instead of 1 this also can say the law of demand when the price decreases the human tendency to purchase more product. 

2) law of supply:-

        the law of supply says that the directly related with the price and quality of the product, the supply mostly depends on the procedure point of view.

        supply is a willingness to supply and ability to sell the commodities or products.

example:-

•     As I have a seen the Royal Enfield bike even though the price is increasing regularly ( when its launched it's cost 125000) now its price was 160000 basic model the price was increasing the demand of the product is increasing daily, to producers are providing to supply a number of products to customers. 
•    I have read a case of pulsar 135 model bike, the bike model is flop products in the market tits launched at 72000 but its decreased to 64000 it first time in automobile industry  because the customers are not willing to buy the product then the demand and price are decreased and the producers are plan to sell at lower price and they decreased the supply of the product. 

3)  The concept of utility:-

     The satisfaction of we get after consumption of the product is known as utility or utility is a concept how much person gets satisfaction from consumption of goods and services.

there are two types of utility are:- cardinal and ordinal utility

cardinal utility: is used to for rating the particular product it can be measured by quantitative methods on the 1-10 satisfaction level of a customer.

ordinal utility: the ordinal utility if the commodity measured in the form of (highly satisfied to highly dissatisfied) 

example:-

• Am planning to buy an ice cream in a shop there are two flavours of a ice cream (chocolate and strawberry) as I like chocolate flavour because of that I will buy the favourite cream and I get the maximum satisfaction by the consumption of the product.
• I have a regular habit when I watch a movie I will rate the rating of the movie out of 5 I will choose mostly 3.5 is a cardinal utility. and I went to a more market after purchasing the product they say to fill the level of satisfaction in the market it denotes bad, good, very good is also can say ordinal utility.

4) Law of diminishing marginal utility:-

the additional unit we get from the consumption of one product unit of goods and satisfaction level has decreased by fulfilling of satisfaction.

example:-

• I love to eat egg puff, at a day I went and brought 3 egg puff  as I eat started the first puff is giving full satisfaction level of a product and I started eating again I have a superior satisfaction on the product, but even I had the first interest as not in the last product, if I had  more consumed the puff I go an less satisfaction and benefits of on the product. 

5) Consumer surplus:-

consumer surplus is defined as the amount of a particular person is willing to pay for a good product and satisfied the utility from the product.

example:-

• I went to a local market to purchase a bag it was worth 800 but after bargaining, the price of the product I got around 650 rs and I get the full satisfaction on the purchase a product difference of  150 is a consumer surplus of a consumer gets.

6) product surplus:-

product surplus is mostly based on the producer side has a benefit to willing to pay by a consumer and how much willing to supply a product and how much going from the product.

example:-

• I buy the mobile in OLX which was 6000RS with my unknowledge later I came to know that the mobile phone 5000rs the different amount of 1000 rs has a profit for the producer is also known as producer surplus.
•  In my state, TAMILNADU famous festival is Pongal at the time the sweets have a higher price on the particular time, at the time brought the 500 rs per kg sweet but the normal time its cost only 300rs the difference of 200RS is the producer has getting benefit on the seasonal time is maybe a producer surplus.