Saturday, August 25, 2018

Mid-term's Economical situations

1. Often unseasonal price fluctuations are observed in the case of fruits.

Concept : Price Mechanism

It refers to the system where forces of demand and supply determines the prices of commodities. Here the unseasonal fluctuation of fruit is due to unavailability or surplus availability of fruit in seasonal or unseasonal time.


2. The No. of tourists visiting hill station is comparatively high that that of religious places.

Concept : Marginal Utility

This situation refers to marginal utility because the satisfaction when a consumer gets while visiting a hill station is much higher than compared to going to a religious place. The facilities provided at hill stations are much more than religious places like comfortable accommodation, hygiene, good food so once a consumer experiences these facilities in a hill station he then prefers going to a hill station rather than to a religious place.


3. The artist or performers performing at different cities or events

Concept : Law of Demand

This situation is related to Law of Demand as the artists are performing at different cities because of the increase in demand for their performance.
One of the law of demand is satisfaction of customers, by performing in different cities they are satisfying the demand of their fans.


4. As the usage of skilled labour along with technology increases the output in expected to be high.

Concept: Increased return to scale

This situation is being referred to this concept because when the input i.e. skilled labour with technology is being increased the output will also increase according to increased return to scale.


5. 3 Prospective locations for large retail outlet location A offers 750net benefit units, location B offers 900 net benefit units & location C offers 850 net benefit units.

Concept : opportunity cost

It refers to choosing the best alternative possible.
Here we will choose the location B because it is giving the maximum net benefit unit that is 900.

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