Microeconomics Through Examples

People face trade-offs
An example can be, imagine you are social media enthusiast but you have your economics exam one day later so today you face a trade-off to how much time you should spend on Instagram and how much on your studies .
Another example could be imagine you have 300 rupees you are equally inclined to watch a movie or to have a fancy lunch, now you're face a trade-off to whether you should watch a good movie or go on a fancy lunch .

People respond to incentives
For example if a kid is asked by his mother to clean his or her room he or she will not do it .But if his or her mum tells them that they will take them to the Pizza joint  if they do it now ,immediately the room will be cleaned .
Another example can be, you want to join a gym you have two choices A and B but B declared that  it will give 40 percent discount on membership if you join till the last date of this month and hence you will be more interested in joining this gym because of the less amount of money you have to pay.

Law of Demand
Law of demand states that when the price of a commodity falls its demand will be more in the market.
For example if the price of onion prices per kg rises demand of it in the market will decrease until the price comes to  normal again.
Another example can be,if the prices of fuel Rises private vehicles will be less used by the public.

Diminishing Returns
Law of diminishing returns explains why the total output decreases after point of time with addition of each extra unit of a particular input.
For example I like Pizza I am happy to eat one large pizza today tomorrow also I eat one whole Pizza. But the third day I feel like having a small pizza and the fourth day I feel like I should switch to something else because I have been eating pizza continuously for 4 days. Another example can be ,I like listening to a particular song I listen to it number of times everyday but after a few days I will be bored out of it.

Indifference curve
Indifference  curve is a point where a combination of two goods or service provide the consumer the same level of satisfaction .On a graph it's a point where the combination of quantities of two goods yield equal utility .
For example I like burger and cakes if I eat one burger and two cakes I get a certain level of satisfaction but if I cut off one cake and eat 1 more burger my satisfaction level is the same so I'm indifferent to the combination .
Another example can be imagine you need a set of formal dressing ,even if you buy two shirts and one pant or two pants or one shirt you are equally satisfied because you have a set to wear.