Without our much notice we deal with many situations which can be defined by economical terms.So lets discuss!!

1)  Theatre artists/performers performing in multiple events/cities

Concept- Determinants of elasticity

Mobility is one of the determinants in elasticity. For example a hospital gains its popularity for its renowned doctors. So doctors are inelastic in this case. Because if doctors are replaced then that hospital will loose is reputation.

But theatre artists or performers are elastic inputs. Because with the replacement of one artist demand will not change. They will be performing in different cities and different events.

2)  We see more and more domestic tourists visiting beaches rather than religious places as seen earlier

Concept-Equi-Marginal Principle

This principle helps us to understand that people spend their money on that good where marginal utility will be very high.

Number of religious places are huge  with respect to that of the number of beaches.

So visiting a beach generates high marginal utility with respect to that of visiting a religious place. In this busy world people gets less holidays and in that time they will get high utility by visiting a beach because they can visit religious places any time they want.

3)  Many star hotels routinely offer unlimited buffet meals

Concept- Revenue, Pricing, Elasticity

In India most families are average middle class families. For middle class families price is highly elastic. With the increase in price they decrease their demand. So most star hotels offer unlimited buffet. In a buffet people are getting ample amount of food by spending average amount. This increases the demand. As the demand increases they increases they increases the volume, reduce the prices.

The volume will make up for the per unit contribution.

4)  Often, unseasonal price fluctuation is observed in case of fruits

Concept-Price mechanism

With season price of a particular fruit increases because the demand for that fruit increases and on the other hand in the off-season the demand for that fruit decreases and so the price also decreases.

Take example of mango. During the summer demand of mango increases so the supplier knows whatever the price they offer people will buy, so price increases. But when summer goes then the demand decreases. So the supplier decreases the price and whatever he sells he enjoys the cash flow.

5)  We often see keen interest especially among young men and women to participate in fashion shows

Concept-Law of diminishing marginal utility

The current generation i.e. the youth generation have the tendency to get bored of things easily. When it comes to fashion the trend changes every month. The marginal utility from a particular fashion decreases over time. How many times will you wear the same fashion shirts? 1 week, 2 week 3 weeks? I am sure not more than that. The marginal utility decreases easily in the youth generation. So in order to keep in touch of the trending fashion the young mem and women are keen to take part in fashion shows.