REALIZING THE LIFE WITH ECONOMICS.

In our everyday life we closely encounter a lots of daily happenings of different incident among which some of these are straightly have a connection with economical concept.

OPPORTUNITY COST

Last time I went to a restaurant for having some food. As the other restaurant this restaurant has lot of option or variety on the menu. Before going to the particular restaurant I have decided to have some biriyani most specifically chicken biryani.

 Once I reached there I got so many option there that I made a trade of of situation on selecting a particular product among them. Then I decided to go for a fish item with some rice. As someone suggested me about the fish item.

 So here I face the situation of making the opportunity cost to play a vital role. To have some of their signature dish or some other dish which is famous there, I made a compromise on my previous thought. Which was suppose to be a opportunity cost to me. I have left the intention or wish to eat the chicken biriyani to try some of their signature dish.

DIMINISHING OF MARGINAL UTILITY

I used to visit the nearest ice cream parlour for my favourite butterscotch. It was quite frequent. I never got bored of this. I used to think this was the only thing I love the most. But as the time goes on I started visited the more than once and every day, and I found that I have started losing my crave for the ice cream. That what I feel as a diminishing of marginal utility. As the day passes as I started consuming more unit of ice cream I felt diminishing of utility.

PRICE ELASTIC DEMAND

Price of agricultural product are mostly determind by supply and demand. The price fluctuation in such group are found each and every year. Price fluctuation of these variable are seasonal in variable. After the harvest period the price goes little lower in side, and in winter the price goes little high. Therefor consumer have to pay high to get this thing.  This is a pure case of price elasticity.

PEOPLE FACE TRADE OFF

Often I visited restaurant, once in a week. Last time I visited a restaurant it was a situation I encountered trade off. There was a menu which contain similar type of item with different name. as I have decided previously what I should have there but as soon as I reached there the length and the breadth of the menu has pushed me in to a trade off situation to select a item for that.

PEOPLE RESPONSE TO INCENTIVES

I can easily remember the last time I done shopping from online site. I have no need of buying a pair of shoe. As I have one. But one day I saw there was offer going on in online shopping portal . a huge discount was there on some selected shoe range. I bought one pair of that shoe. Though I don’t need one still I bought one pair of shoe. This was the response towards incentives, which make me buy those shoe although I have one.