Economics Concepts Used In Reliance Trends

•  Elasticity Of Supply:- Elasticity of supply is defined as the degree of responsiveness of quality supplied of a commodity to change in its price.

 Justification:- In Reliance Trends if price is more that you will see more collection , as of time when price is decreased or at the time of discounts/offers less quantity of product were available because supply of product get decreased due to decrease in price of commodities.

• Opportunity Cost:- The opportunity cost of anything is only the next-best alternative foregone and not any other alternative.

Justification:- In Reliance Trends we have many options of clothes . Like we choose one kurti of  Rs.500(Libas) and other one Rs.600(AV) . So people choose kurti of Rs.600 for better quality but the cost of Rs.500(libas) was next best alternative for customers.

• Consumer Surplus:- The difference between what consumer willing to pay and the actual amount paid by the consumer is known as consumer surplus.

Justification:- In Trends I am going for shopping I'm willing to pay Rs.2000 but actual amount I paid because of discount received I will only pay Rs.1500 So, here Rs.500 is my consumer surplus.

• Law of Diminishing Utility:- After consumption of certain amount of goods , the amount of consumption will decreases by consuming 

Justification:- It does not always happen that the customers were only purchased from Reliance Trends after purchasing for two to three times customers does not want to go Reliance Trends for shopping because after purchasing much from Trends utility of purchasing will decreases after sometime.

• Economies of Agglomeration:- It is defines as the cost of reduction that firms obtain by locating in proximity to each other helps to accumulate information and the flow of new and innovative ideas among firms.

Justification:- In reliance trends you will not only get collection of clothes you will get footwear , reliance fresh also . So in Reliance Trends economies of agglomeration is applicable.