1.)
LAWS OF DEMAND: The laws of demand states that when
then the price of a product increases the demand of that product decreases.
EXAMPLE: We will find that if the price of the butter suddenly rises
then we will find that the demand for the butter will decrease because there
will other substitute in the market like meoneese and ghee.
2.)
PEOPLE RESPONED TO INCENTIVES: people often respond to the
incentives because they are being benefited more from that.
EXAMPLE: We will find that when we are browsing through a shopping
app and we find a discount on a product then we will tend to buy that product even
more. This is how we know that people respond to incentives.
3.)
OPPORTURNITY COST: Opportunity cost is something that we give up to other product.
EXAMPLE: We had event during the exams so I had to leave my studying
for coordinating during the exams. This event which I was performing without
studying during the exams is an example for opportunity cost.
4.)
UTILITY: Utility is the satisfaction that we obtain
after the using the product.
EXAMPLE: Suppose we are consuming 2 ice-cream then the total number of satisfaction that
is obtained from consuming those ice-cream is known to be as utility.
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