DEMAND:
Demand is
consumer’s desire and will to purchase goods at various prices.
But every
demand cannot be termed as demand until we have ability to fulfil that demand
or purchase that product. Ability to purchase comes from price. Whatever we
demand or desire depends upon the price of commodity. So, if we are able to buy
that particular commodity on the given price then it is called demand.
Example: we
the people of IBA want to purchase litchi drink because of its taste or weather
etc. so here the purchase of litchi is known as demand.
Utility:
The satisfaction
people derive from their consumption activity.
In other
word utility is how useful a commodity is for us. It is the power of the
commodity to satisfy humans.
Example:
when I consume a chocolate, it makes me happy, so it has power to satisfy my
need. this is utility.
Opportunity cost:
The sacrifice
we do to achieve something is opportunity cost.
Or,
opportunity cost is the cost of the next best alternative.
a choice
needs to be made between several mutually exclusive alternatives assuming the
best choice is made.
Example:
imagine you have 200 rupees with yourself. U need to purchase either calculator
or biryani. You purchased calculator. So you chose calculator by giving up the
cost of biryani which is the next best alternative. This is opportunity cost
for biryani.
Incentives:
Incentives means
inducing. It is also known as act of giving benefits for some act of others.
It is an act
of awarding someone to act in a particular way. Incentives attract both buyers
and sellers. Price and quality are the top most incentives which attract both
buyers and sellers.
Example: in
our college, there is one workshop on Monday regarding strategic management. So
students who will volunteer it will be getting certificates as reward for their
job. So here the certificate is nothing but incentive.
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