To analysts,Indian industry will be able to take advantage through offering products at low prices.
Law of Demand:
As price decreases more people are willing to buy so here Indian industry is taking advantage by reducing prices to gain more customers.
Ex: I went to Max fashion to buy t-shirts.At first I thought to buy 2-shirts But when I came to know that there is 30% off on t-shirts I bought 4.So as the price decreases the demand increases.
We often see keen interest especially among young men and women to participate in fashion shows.
People respond to incentives:
Fashion shows are shortcuts to get success in life.As you can get fame and money in a single picture most of the youth are willing to participate in fashion shows.
Ex: During my Engineering when I went to buy laptop ,I came to know that i will get pen drive ,and power bank free I immediately bought it as the model is very good and also I am getting extra benefits for free.
We see more and more domestic tourists visiting beaches rather than religious places seen earlier.
Income Increases Demand also Increases:
As the income Increases people are willing to afford more and much better than before.So here tourists are preferring to visit tourist places as they are able to afford now .
Ex: When my fathers salary is less we had a normal TV ,But as my father's salary increased we are able to buy good TV set with best features. Here as income increased our demand also increased.
Three prospective locations for a large retail outlet-Location 'A' offers 750 net units,Location 'B' offers 900 net benefit units and Location 'C' offers 850 net benefit units.
Opportunity Cost:
Selecting Location 'B' which offers 850 net benefit units instead of choosing Location 'C' which gives you 900 Net benefit units.The difference between to alternatives is Opportunity cost of this decision.
Ex: I like buying new clothes.Here I am spending my money and time on buying clothes instead i can spend that time in doing reading and money on other things which are more useful.
Often, unseasonable price fluctuations are observed in case of fruits.
Price Mechanism:
Price of particular fruits affect the demand of that fruits.Here as the price increases, it affects demand and supply.
Ex: I went to market to buy Apples,but the price of dozen apples is 300, So instead I bought Oranges which are available at low cost at that time.
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