1. We often see keen interest among young men and women to join in fashion industry. This is because fashion industry changes at regular intervals. This is called induced obsolescence which falls under cardinal utility of consumer behaviour. Assumption is that consumers are not identical and their tastes and preferences vary and change from time to time.
2.Increased usage of combination of skilled labour and technology is believed to result in increased output of manufacturing. This is by a concept called increasing return to scales. This states that rate of change in output incrreases more than proportional to change in input. Hiring some few labourers will increase output manufacture manifold.
3. Many star hotels routinely offer unlimited buffet meals. This is according to a principle of economics - people respond to incentives. They get lured by anything attractive offered to them and they respond positively when such a meal is offered to them. Because by paying a a certain amount they can enjoy an unlimited meal.
4. To analysts, indian industry will be able to take advantage through offering products at low prices. Here both the consumer and producer are at surplus. Consumers will get products at low prices than expected so there is a difference between what they are paying and they are willing to pay. Same goes for producers. They will sell more than expected if consumers are buying more. They also make an implicit gain. This is producer surplus.
5.Often, unseasonal price fluctuations are observed in case of fruits. This is by a concept called price mechanism which explains the manner in which the prices of goods and services affect the supply and demand of them. Maybe there are some natural calamities which have decreased production yet demand is as usual. So price will increase.
2.Increased usage of combination of skilled labour and technology is believed to result in increased output of manufacturing. This is by a concept called increasing return to scales. This states that rate of change in output incrreases more than proportional to change in input. Hiring some few labourers will increase output manufacture manifold.
3. Many star hotels routinely offer unlimited buffet meals. This is according to a principle of economics - people respond to incentives. They get lured by anything attractive offered to them and they respond positively when such a meal is offered to them. Because by paying a a certain amount they can enjoy an unlimited meal.
4. To analysts, indian industry will be able to take advantage through offering products at low prices. Here both the consumer and producer are at surplus. Consumers will get products at low prices than expected so there is a difference between what they are paying and they are willing to pay. Same goes for producers. They will sell more than expected if consumers are buying more. They also make an implicit gain. This is producer surplus.
5.Often, unseasonal price fluctuations are observed in case of fruits. This is by a concept called price mechanism which explains the manner in which the prices of goods and services affect the supply and demand of them. Maybe there are some natural calamities which have decreased production yet demand is as usual. So price will increase.
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